Canada-based Teck Resources' copper and zinc production fell in the fourth quarter 2019 from the prior year, while lead production rose due to a planned major maintenance shutdown of the KIVCET smelter in 2018.
Copper output in the fourth quarter dipped to 71,000t, down by 3pc from the fourth quarter of 2018. Production for the year was higher at 297,000t, an increase of 1pc compared with 2018.
Decreased output in the fourth quarter was primarily because of the labor action at Carmen de Andacollo, Teck said. Operations were suspended because of a strike from 14 October-5 December which caused a 9,000t loss in production. Highland Valley Copper offset some of the loss as a result of higher copper grades and recoveries.
Its net cash costs for copper after by-products decreased by $0.18/lb to $1.58/lb in the quarter compared with the same period last year due to a greater proportion of production from High Valley Copper versus a year earlier.
The producer expects 2020 production levels to be similar to 2019 levels of 285,000-300,000t. It expects copper production to be in a range of 300,000-315,000t for 2021 to 2023, excluding Quebrada Blanca Phase 2 (QB2), which will add to overall copper production in 2022.
Teck's copper project Quebrada Blanca Phase 2 in northern Chile remains under construction and continues to target a fourth quarter 2021 completion, and a ramp-up to full production in 2022. But permitting and social unrest have caused delays in Chile. This project will have a 300,000 t/y capacity in the first five years and has a mine life of 25 years.
The copper metal market remains under pressure from the macroeconomic concerns and global trade dispute, the producer said. But concerns over trade disputes appear to be lessening and strong demand growth combined with a challenging supply environment should support copper prices in 2020, Teck said. Teck said the fundamentals for the global copper market appear to be supportive over the long-term.
Refined zinc production dropped by 12pc year on year to 66,000t in the fourth quarter, while output for the year fell to 287,000t, down by 16,000t compared with a year earlier.
The zinc concentrate market remained in a surplus for the fourth quarter and slightly higher spot treatment charges.
Mine production globally is under pressure with high cost mines struggling to maintain margins with low zinc prices and higher treatment charges, Teck said.
Teck expects zinc concentrate production guidance for 2020 at 600,000-640,000t, with a range of 590,000-640,000t for 2021-2023.
Mining and concentration production in Pend Oreille were placed on care and maintenance on 31 July. There was no production in the fourth quarter and electrical equipment failure at the end of August, which contributed to a 10pc reduction of refined zinc production at Trail Operations. Repairs relating to the equipment failure were completed ahead of schedule in the end of November. Teck reported refined lead output at Trail Operations in the same quarter rose by 70pc year on year to 17,000t, due to a planned major maintenance shutdown of the KIVCET smelter in 2018.
Canada-based Teck Resources is the third largest zinc producer in the world, operating mines in Chile, Peru, the US and Canada. Teck also produces molybdenum and silver.
