Teck Resources Faces Challenges as China's Tariffs Impact Red Dog Mine Zinc and Lead Concentrates Shipments

Published: May 7, 2025 09:51

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According to SMM's knowledge, Teck Resources’ zinc and lead concentrates from the Red Dog mine in Alaska — originally destined for China — is affected following China’s latest round of retaliatory tariffs on American goods. Teck executives immediately engaged with Chinese clients, but buyers reportedly expressed reluctance to bear the full cost of the new tariffs on upcoming shipments. In response, Teck’s commercial team has flown to China to renegotiate contracts with major customers, including discussions on swapping Red Dog concentrates with material from Teck’s non-U.S. mines or third-party sources.

CEO Jonathan Price acknowledged during the company’s April 24 earnings call that the Chinese tariffs are creating supply challenges, and noted that the commercial team is actively evaluating various solutions — including redirecting shipments to other markets.

During Trump's first administration, China imposed 25% tariffs on U.S.-origin zinc concentrates and 10% on lead. At that time, Teck and its customers shared the costs, allowing shipments to continue into China. With the new tariffs even higher, similar arrangements may prove more difficult.

Luckily, Red Dog only ships annually during a four-month window each summer once sea ice melts. This gives Teck some time to finalize a workaround. Teck has declined to comment on specific negotiations but confirmed that shipments won't begin before July, demand remains strong and they have a regionally diversified customer base.

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