Toronto- and New York-listed Teck Resources has pressed pause on major growth projects until its flagship Quebrada Blanca (QB) copper operation in Chile delivers consistent output.
The Vancouver-based miner said Tuesday that its board would not sanction new large-scale developments until QB reached steady-state production, following delays tied to tailings management issues.
The decision comes as the company also announced a comprehensive review of its operations – launched in August – aimed at restoring investor confidence in its execution capability.
At the heart of the problem is slow sand drainage at the QB tailings management facility, a technical bottleneck that has constrained production and slowed the ramp-up of a project billed as transformative for Teck’s copper portfolio. The company has outlined an action plan that includes modifying cyclone facilities, trialing coarser grind sizes, and refining sand placement to accelerate drainage. A respected industry veteran has also been brought in as special adviser to the CEO to drive improvements on site.
The comprehensive review would conclude by October, said Teck, stating that a revised guidance was expected alongside third-quarter results.
Beyond QB, Teck also restructured its leadership ranks. The heads of Latin American and North American operations will now report directly to president and CEO Jonathan Price, while long-serving COO Shehzad Bharmal has retired after more than three decades at the company.
Teck has staked its future on copper, positioning QB as a cornerstone asset amid surging long-term demand from electrification. Persistent operational hurdles have weighed on delivery timelines.