Tektronix Resources: Chile's QB2 expansion project can be delayed for up to 6 months

SMM7 March 27: recently, Canadian mining company Tektronix Resources (Teck Resources) said that due to the impact of the epidemic, the completion of its Chile Quebrada Blanca Phase II (QB2) expansion project may be delayed by 6 months.

Although the company is gradually resuming work on the QB2 project, it noted that the completion of the project may be five to six months longer than expected (the fourth quarter of 2021).

In order to protect the health and safety of employees and make efforts to stop the spread of the epidemic in Chile, Tektronix temporarily suspended the Quebrada Blanca Phase II (QB2) expansion project in March this year, and the number of workers in the mining area was reduced to less than 500. after returning to work, the number of employees gradually increased to more than 3000.

Tektronix Resources plans to continue to increase the number of workers in the next three months to reach pre-epidemic levels. If conditions permit, the number of employees in the mine could reach 4000 by the end of July and 8000 by October.

Teck sees the Quebrada Blanca2 expansion as the most important growth opportunity and is expected to double its copper business. This is expected to extend the life of old deposits by 28 years and significantly increase copper production to 300000 tons per year from 234000 tons per year in 2017.

The Canadian mining giant is already working on the third phase of the QB project, where copper production will double to 600000 tons per year. The Quebrada Blanca copper mine may become the second largest copper mine in Chile after Escondida.

Due to the impact of the epidemic, Teck withdrew its 2020 production guidance in April. Currently, the company expects to produce 11 million to 12 million tons of steelmaking coal and 14.5 to 160000 tons of copper in the second half of the year, with zinc production forecast to be between 315000 and 345000 tons.

"Tektronix Resources' copper production fell 23% in the second quarter from a year earlier, and profits plunged by more than 82%.

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