Teck Announces Regulatory Approval for the Zafranal Project
12 May 2023 - 10:45PM
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) announced today that the Zafranal copper project in Peru
has received regulatory approval from SENACE, Peru´s National
Service of Environmental Certification for Sustainable Investments.
Zafranal is a highly competitive, mid-sized copper-gold development
project located in the porphyry copper belt of Southern Peru in the
Arequipa Region. The deposit is owned by Compañía Minera Zafranal
S.A.C. (“CMZ”), of which Teck owns 80% and Mitsubishi Materials
Corporation (“MMC”) owns 20%.
“Regulatory approval of the Zafranal Project is an important
step forward in our strategy to grow our copper business and unlock
significant value for shareholders,” said Jonathan Price, CEO,
Teck. “Zafranal will be a low-cost, long-life operation, and is a
key part of Teck’s industry-leading pipeline of high-quality,
low-cost copper assets in well-established mining jurisdictions in
the Americas.”
Located in the Arequipa region, in southern Peru, Zafranal has
an expected mine life of 19 years and will produce copper-gold
concentrates through an open-pit mining and conventional
concentration process. Copper ore processing, including crushing,
grinding, flotation, thickening and filtering, will be carried out
in a concentrator plant with a processing capacity of up to 80,000
tonnes of ore throughput per day. The mine and
concentrator are expected to produce an average of 133,000
tonnes of copper contained in concentrate during its first 5 years
of production.
A Feasibility Study of the Zafranal Project was completed in
June 2019 by Ausenco which was updated in January 2020 to include
discrete value-added engineering updates. Moving forward, the
Zafranal team will update project capital and operating cost
estimates and will develop detailed engineering plans as well as
minor permitting activities through 2023. The project could be
positioned for a formal project sanction decision as early as H1
2024.
Receiving regulatory approval for the Zafranal Project is
another positive step in Teck’s strategy to advance its industry
leading Copper Growth portfolio in a timely and prudent manner.
Forward Looking Statements This press release
contains certain forward-looking statements within the meaning of
the United States Private Securities Litigation Reform Act of 1995
and forward-looking information as defined in the Securities Act
(Ontario). Forward-looking statements and information are
statements other than historical fact and can be identified by
statements that certain actions, events or results “may”, “could”,
“should”, “would”, “might” or “will” be taken, occur or achieved.
Forward-looking statements and information involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Forward-looking statements in this
release include statements concerning: the expectations regarding
the timeline for initiating permitting, development and
sanctioning of Zafranal and expectations regarding mine life,
production capacity, run-rates, and operating costs for
Zafranal.
Forward-looking statements and information are made based upon
certain assumptions, including but not limited to, assumptions that
Zafranal can and will be developed and sanctioned in accordance
with Teck’s current plans, will operate as expected, and regarding
capital and operating costs. Factors that could cause actual
results, performance or achievements to differ materially from
those in the forward-looking statements include, among others,
Teck’s ability to advance permitting and development of Zafranal,
including challenges to our permits, risks related to mineral
reserves and resources estimation, metallurgical recoveries and
mine life, development risks, regulatory restrictions (including
environmental and other regulatory restrictions and liabilities),
activities by governmental authorities, increases in expected
capital and operating costs, and changes in expectations with
respect to sanction decisions. The foregoing list of important
factors and assumptions is not exhaustive. Other events or
circumstances could cause actual results to differ materially from
those estimated or implied by our forward-looking statements and
information. Certain of these risks are described in more detail in
Teck’s 2022 Annual Information Form and Form 40-F and in subsequent
public filings by Teck with Canadian securities administrators and
the US Securities and Exchange Commission. None of Teck, MMC or CMZ
assume any obligation to revise or update these forward-looking
statements and information after the date of this document or to
revise them to reflect the occurrence of future unanticipated
events, except as required under applicable securities laws.
About Teck As one of Canada’s leading mining
companies, Teck is committed to responsible mining and mineral
development with major business units focused on copper, zinc, and
steelmaking coal. Copper, zinc, and high-quality steelmaking coal
are required for the transition to a low-carbon world.
Headquartered in Vancouver, Canada, Teck’s shares are listed on the
Toronto Stock Exchange under the symbols TECK.A and TECK.B and the
New York Stock Exchange under the symbol TECK. Learn more about
Teck at www.teck.com or follow @TeckResources.
About MMCMitsubishi Materials
Corporation, founded in 1950, is a Japan-based company principally
engaged in the processing and manufacturing of non-ferrous metals
and products. The group operates businesses in over 30 countries
across the world and employs around 23,000 people. Its extensive
scope of operations ranges from mining, smelting/refining and
recycling, to high-performance processed products, providing
solutions for a sustainable society. For more information, visit
our website at https://www.mmc.co.jp/corporate/en/.
Teck Media Contact: Chris
StannellPublic Relations
Manager604.699.4368chris.stannell@teck.com
Teck Investor Contact:Fraser
PhillipsSenior Vice President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
MMC Contact:Corporate
Communications Dept., Strategic Headquarters,Mitsubishi Materials
CorporationTel:+81-3-5252-5206
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