Teck Resources

  (Redirected from Cominco)

Teck Resources Limited known as Teck Cominco until late 2008, is a diversified natural resources company headquartered in Vancouver, British Columbia engaged in mining and mineral development, including steelmaking coal, copper, zinc and energy. Secondary products include lead, silver, gold, molybdenum, germanium, indium, and cadmium.[2] Teck Resources was formed from the amalgamation of Teck and Cominco in 2001.[3]

Teck Resources Limited
Public
Traded asNYSETECK
TSXTECK.ATECK.B
S&P/TSX 60 component
ISINCA8787422044 Edit this on Wikidata
IndustryMetals and Mining
Founded1906 Consolidated Mining and Smelting Company of Canada
Headquarters,
Key people
  • Norman B. Keevil, Chair
  • Donald R. Lindsay, Pres/CEO
  • Ronald A. Millos, CFO
ProductsCoal, Zinc, Copper
Revenue
  • Increase C$12.6 billion (2018)
  • Increase C$11.9 billion (2017)
  • Increase C$9.30 billion (2016)
  • Increase C$3.11 billion (2018)
  • Increase C$2.46 billion (2017)
  • Increase C$1.04 billion (2016)
Total assets
  • Increase C$39.6 billion (2018)
  • Increase C$37.0 billion (2017)
  • Increase C$35.6 billion (2016)
Total equity
  • Increase C$23.0 billion (2018)
  • Increase C$20.0 billion (2017)
  • Increase C$18.0 billion (2016)
Number of employees
10,700 (2018)
Divisions
  • Teck Metals Ltd. (Vancouver)
  • Teck Cominco Peru S.A (Lima)
  • Minera Torre de Oro, S.A. de C.V (Mexico)
Websitewww.teck.com
Footnotes / references
[1]:10,35,41(PDF 12,37,43)

In 2018, Teck Resources opened the C$17.0 billion Fort Hills oil sands project[4] and it has a second larger C$20.0 billion open-pit petroleum-mine proposal—Frontier Mine—north of Fort McMurray, Alberta, in the regulatory process.[5][4]

HistoryEdit

Cominco (1906-)Edit

Cominco started in 1906 as The Consolidated Mining and Smelting Company of Canada, formed by the amalgamation of several units controlled by the Canadian Pacific Railway.[6] CM&S, or "Smelters" as it was often called by investors, changed its name to Cominco in 1966. Cominco's core Sullivan Mine in Kimberley, British Columbia which began production of lead, zinc, silver and tin in 1909, would operate for more than 90 years until its ore reserves exhausted in 2001.

Teck-Hughes (1913- )Edit

Teck-Hughes Gold Mines Limited was established in 1913 in Ontario, following the discovery of gold in 2012 by prospectors Sandy McIntyre and James Hughes, in Teck Township—now known as Kirkland Lake.[7][8][9] An American group of investors led by Charles H. Denison —including International Nickle Company (INCo)'s Ashton W. Johnston—acquired two thirds of Teck-Hughes' shares. It was Ontario's first gold mine in commercial production. When the ore was exhausted in the 1960s, after 50 years of production, it had produced 3.7 million ounces of gold worth $104 million.[9]:14[10] The Beaverdell Mine, purchased by Teck in 1969, went back even further to 1898, and produced silver until 1991. Norman B. Keevil (b.1910 in Pike Lake, Saskatchewan) a mining entrepreneur with a background in geophysics, acquired Teck-Hughes in the 1960s.[9]:20 In 1963, his son who was also a geoscientist—Norman Keevil Jr., who was then 25-years old—became vice-president of exploration at Teck.[11] Keevil was named Mining Man of the Year in 1979 for having presided over a series of mine constructions in the 1970s. From 1979 to 2015, Keevil oversaw Teck's major mining projects including Hemlo, Voisey's Bay and Antamina.[11] Over the same time period, Teck became "one of the world's largest producers of metallurgical coal."[11] In 2012, as Chairman of Teck Resources Limited, Keevil was named as the Entrepreneur Of The Year for his significant contributions to British Columbia.

Teck ComincoEdit

The association between Teck and Cominco began in 1986, when Teck and two industry partners acquired a shareholding from CP Limited, and culminated with the merging of the two companies in July 2001.

On May 8, 2006, Teck Cominco offered to purchase Inco for $16 billion, but CVRD eventually purchased it for $17 billion.

On July 29, 2008, Teck Cominco announced an agreement with Fording Canadian Coal Trust, which owned a 60% stake in the Elk Valley Coal Partnership, to purchase 100% of its assets. Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake. The facilities are located near Fernie, British Columbia. The purchase was closed on October 30, 2008, with a final cost of $14 billion USD. Elk Valley Coal Corporation was renamed Teck Coal Limited. The purchase resulted in Teck taking on US$9.8 billion in debt; the company suspended dividends, cut spending, and sold some assets to save money.[12] On January 9, 2009, the company also announced a plan to cut 13% of their total workforce, amounting to 1,400 jobs, saving the company $85 million. Coal production targets were also lowered by 20% in response to declining worldwide demand for steel, in the midst of the global financial crisis.[13]

 
Teck Cominco logo before 2008 rebranding.

Tech Resources (2008-)Edit

Beginning October 1, 2008, Teck Cominco began rebranding itself as Teck.[14] The legal name of the company was changed to Teck Resources Ltd. on April 23, 2009, after being approved by shareholders the previous day.[15]

In 2008, Teck's $25 million donation to BC Children's Hospital Foundation earned its name attached to the Teck Acute Care Centre expected to complete construction in 2017.[16]

In July 2009, China Investment Corporation bought a 17% stake in Teck for C$1.74 billion.[17]

In 2012, the Company announced record earning, record profit and record production, thus ending the year 2011 with $4.4 billion in cash. Besides expanding into the energy sector, the company was also executing two major projects in Chile and planning a $600 million restart of its Quintette Mine near Tumbler Ridge, British Columbia.[18]

Operations and major projectsEdit

Teck's principal products are steel-making coal, copper, and zinc. As of 2016, 44% of revenue was from steel-making coal, 34% of revenue was from zinc, and the remaining 21% was from copper.[19] Teck also has interests in oil sands projects in Northern Alberta.

CoalEdit

In 2018, Teck produced 26.2 million tonnes of coal from six mines in southeastern British Columbia and western Alberta,[1]:2 with most of it exported to countries in the Asia-Pacific region.[19] The coal is transported to ports and destinations in Eastern Canada through rail lines owned by Canadian Pacific. There is one in Alberta—Cardinal River Mine in Hinton, Alberta, and five steelmaking coal operations in British Columbia Fording River coal mine in Elkford, Elkview Mine in Sparwood, Greenhills Mine in Elkford, Line Creek Mine in Sparwood, and Coal Mountain Mine in Sparwood.[1]:2

ZincEdit

In 2016, Teck produced 662,000 tonnes of zinc in concentrate, and 311,000 tonnes of refined zinc.[19] It was the world's third largest producer of mined zinc.[19] Almost all of its mined zinc comes from the Red Dog mine in Alaska, one of the largest zinc mines in the world. It also produces refined zinc at its smelting and refining complex in Trail, British Columbia. In addition to Zinc, the Trail complex produces other byproducts, including 99,000 tonnes of refined lead, and 24.2 million ounces of silver, as of 2016.

CopperEdit

In 2016, Teck produced 324,200 tonnes of copper from mines in North and South America.[19] Its largest mine is the Highland Valley Copper mine near Logan Lake, British Columbia, with 119,000 tonnes of copper and 3.4 million pounds of molybdenum in 2016.[19] Teck has a 22.5% interest in the Antamina mine in Peru, one of the largest copper/zinc mines in the world. Teck also runs the Carmen de Andacollo and Quebrada Blanca mines in Chile.

EnergyEdit

Fort HillsEdit

In 2018, Teck Resources opened the $17-billion Fort Hills oilsands project, which will produce 194,000 barrels of oil a day.[4] Teck Resources has a 21.3 per cent stake. "Suncor Energy Inc. and Paris-based Total SA have a 54.1 per cent and 24.6 per cent ownership of the project, respectively."[4]

Frontier MineEdit

Frontier Mine was first proposed in 2011. It is a "292-square-kilometre open-pit petroleum-mining operation" located about 120 kilometres north of Fort McMurray, Alberta. If approved, it is projected to produce about 260,000 barrels of oil a day.[5] "Frontier carries an estimated $20-billion price tag, which would make the project slightly more expensive than Teck’s own market capitalization of $18 billion."[4] If it gets regulatory approval, the first phase in 2026 would produce 85,000-bpd. The second phase would begin in 2036.[4]

Environmental recordEdit

In the past, Teck Cominco has been criticized and sued for violating environmental laws and standards.

 
Cominco Tank Car

The company's smelter in Trail, British Columbia was blamed in 2003 for heavily contaminating the Columbia River.[20] Legal action taken by American citizens living in settlements downriver progressed to the U.S. Supreme Court and was recently denied certiorari, solidifying the Appellate Court's holding that Teck is subject to U.S. jurisdiction even though it is a Canadian company.[citation needed]

A refinery belonging to Teck in Trail, British Columbia, was the site of a lead spill into the Columbia River on May 28, 2008.[21]

In 2007, the company's Red Dog mine operation in north-western Alaska has been ranked by the U.S. Environmental Protection Agency as one of the most polluting facilities in the United States based on output tonnage of toxic waste, largely (over 99%) in the form of blasted and moved, but otherwise unprocessed, waste rock from mining operations.[22][23] Residents living downstream from the mine launched a lawsuit against Teck Cominco, demanding that the Red Dog mine complies with its environmental obligations and that it pay fines for continuing to violate its water permit requirements. On November 30, 2007, the company released the final report of its six-year study, with the oversight of the Alaska Department of Environmental Conservation, of risks of dust escaping from traffic along the DeLong Mountain Regional Transportation System Road. The final report incorporates formal comments and input from a wide range of government agencies and stakeholders, including local village residents. The risk assessment concludes it is safe to consume subsistence foods in all areas without restrictions.[24]

The Colville Confederated Tribes filed a lawsuit against Teck Cominco in 2004, claiming the company had dumped 140,000 tons of slag directly into rivers adjacent to its Trail smelter between 1896 and 1995, polluting the surface water, ground water and sediment of the upper Columbia River and Lake Roosevelt, (in Washington state, U.S.) with hazardous metals including arsenic, cadmium, mercury, lead, copper and zinc.[25] Teck has admitted to the dumping.[needs update]

In 2007, Teck Resources made environmental and social performance a priority. In 2007 they displayed awards for safety, reclamation and sustainable development on their website.[26]

Indigenous rightsEdit

In 2016, Teck Alaska Inc., a subsidiary of Teck Resources Ltd., was ranked as the best of 92 oil, gas, and mining companies on upholding indigenous rights in the Arctic.[27]

See alsoEdit

ReferencesEdit

  1. ^ a b c "Teck Annual Report 2018" (PDF). Teck. March 7, 2019. p. 148. Retrieved December 10, 2019.
  2. ^ "Other Metals". Teck Resources. Retrieved September 22, 2019.
  3. ^ Weber, Terry (April 30, 2001). "Teck and Cominco to merge". The Globe and Mail. Retrieved December 10, 2019.
  4. ^ a b c d e f Morgan, Geoffrey (September 24, 2018). "Hearings begin today into a $20-billion oil sands mine that's even bigger than the massive Fort Hills: The Frontier mine would cost $2 billion more than Teck Resource's market cap". National Post. Calgary. Retrieved December 10, 2019.
  5. ^ a b Tasker, John Paul (December 10, 2019). "Kenney in Ottawa to call for approval of massive open-pit oilsands mine". CBC News. Retrieved December 10, 2019.
  6. ^ "Tales of Teck and Cominco". Canadian Mining Journal. Retrieved December 10, 2019.
  7. ^ "Bylaws". Kirkland Lake Town Council. Archived from the original on July 6, 2011. Retrieved November 14, 2010.
  8. ^ "Our History". Teck. Retrieved December 10, 2019.
  9. ^ a b c Keevil, Norman Bell (2017). Never Rest on Your Ores: Building a Mining Company, One Stone at a Time. McGill-Queen's Press (MQUP). p. 496. ISBN 9780773551558. OCLC 1029883594.
  10. ^ Pain, S.A. (1960). Three Miles of Gold: The Story of Kirkland Lake. Toronto: The Ryerson Press. p. 29.
  11. ^ a b c "Norman B. Keevil: A lifetime of achievement at Teck". Northern Miner. May 19, 2015. Retrieved December 11, 2019.
  12. ^ Bouw, Brenda (November 21, 2008). "Teck Cominco cuts dividend, spending plan". Toronto Star. Retrieved September 23, 2019.
  13. ^ Koven, Peter (January 9, 2009). "Teck Cominco cuts 1,400 jobs". Financial Post.[dead link]
  14. ^ "Teck scraps Cominco brand". Toronto Star. October 1, 2008. Retrieved September 23, 2019.
  15. ^ "Teck Shareholders Approve Name Change to Teck Resources Limited". Teck. April 23, 2009. Archived from the original on January 4, 2010. Retrieved September 23, 2019.
  16. ^ "News Release: Teck Acute Care Centre Major Milestone" (PDF). Provincial Health Services Authority. April 12, 2016. Retrieved September 23, 2019.
  17. ^ "China Investment Corporation Announces Investment in Teck Resources Limited". marketwire.com. July 3, 2009. Archived from the original on December 7, 2013. Retrieved September 23, 2019.
  18. ^ Hamilton, Gordon (February 9, 2012). "Teck reports record earnings, record revenues, record production". The Vancouver Sun. Archived from the original on February 12, 2010. Retrieved September 22, 2019.
  19. ^ a b c d e f "Teck Annual Report 2016" (PDF). Teck. March 3, 2017. Retrieved September 23, 2019.
  20. ^ Brown, Chris (December 15, 2003). "A century of slag". CBC News. Archived from the original on June 11, 2004. Retrieved September 23, 2019.
  21. ^ Vancouver Sun (May 30, 2008). "Lead from Teck Cominco spilled into Columbia River". canada.com. Archived from the original on November 4, 2012. Retrieved September 23, 2019.
  22. ^ "Red Dog top toxic polluter". Siku News. March 31, 2007. Archived from the original on July 16, 2011. Retrieved September 23, 2019.CS1 maint: unfit url (link)
  23. ^ "Pollution Rankings: by Facility". Scorecard.org. 2002. Archived from the original on August 3, 2017. Retrieved September 23, 2019.
  24. ^ "Red Dog road study declares subsistence foods safe". The Arctic Sounder. December 27, 2007. Retrieved January 17, 2008.[dead link]
  25. ^ Howe, Marc (September 11, 2012). "Teck confesses to a century of US river pollution". mining.com. Retrieved September 23, 2019.
  26. ^ "Environmental, health, safety and social responsibility awards presented to Teck". Teck Cominco. 2007. Archived from the original on October 13, 2007. Retrieved September 23, 2019.
  27. ^ Overland, Indra (December 2016). "Ranking Oil, Gas and Mining Companies on Indigenous Rights in the Arctic". ResearchGate. Norway: Árran Lule Sami Centre. ISBN 9788279430599. Retrieved September 23, 2019.

External linksEdit