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transcript
Developing a roadmap for a Low Carbon Economy
June 20, 2019Peter WanLead, Technology & Innovation
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These slides contain certain forward-looking statements within the meaningof the United States Private Securities Litigation Reform Act of 1995 andforward-looking information within the meaning of the Securities Act (Ontario)and comparable legislation in other provinces.
Forward-looking statements involve known and unknown risks, uncertaintiesand other factors which may cause the actual results, performance orachievements of Teck to be materially different from any future results,performance or achievements expressed or implied by the forward-lookingstatements.
These forward-looking statements involve numerous assumptions, risks anduncertainties and actual results may vary materially.
Certain of these risks are described in more detail in Teck’s annualinformation form available at www.sedar.com and in public filings with theSEC. Teck does not assume the obligation to revise or update theseforward-looking statements after the date of this document or to revise themto reflect the occurrence of future unanticipated events, except as may berequired under applicable securities laws.
Under no circumstances should the information contained herein beconsidered an offer to sell or a solicitation of an offer to invest in securities.
Forward-Looking Information
Teck Overview
• Diversified resource company, committed to responsible mining and mineral development
• Major business units focused on steelmaking coal, zinc, copper and energy
• Own or have an interest in 12 mines, one large metallurgical complex, an oil sands mining and processing operation and several major development projects in the Americas
• Over 100 years of experience3
Sustainability Strategy
• Strong sustainability performance enabled by a strategy built around developing opportunities and managing risks
• Implementing a sustainability strategy with short-term, five-year goals and long-term goals stretching out to 2030
• In the process of reviewing our overall strategy
Goals cover the six areas of focus representing the most significant sustainability issues and
opportunities facing our company:
Community Water Our People
Biodiversity Energy and Climate Change
Air
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Teck’s Strategy for Climate Action
Teck in top 5 of 50+ companies ranked by DJSI
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DJSI Climate Strategy Assessment: 2018 Percentile Rankings2
Teck (95th percentile)
1. Positioning Teck for the Low-Carbon Economy
2. Reducing our Carbon Footprint
3. Advocating for Climate Action
4. Adapting to the Physical Impacts
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Our GHG Profile. Our Targets and Commitments
GHG Emissions Intensity Ranges Among ICMM Members1
kgCO2e per tonne of product
Teck in bottom quartile for
miners
Copper Coal
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Solar Power for Quebrada BlancaNorthern Chile
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Overall Teck goal to commit to 100 megawatts (MW) of alternative energy generation by 2030
Quebrada Blanca
In 2013, QB partnered with AES Gener to guarantee a supply of solar power.
Capacity of 21 MW and delivers a total of 55 gigawatt hours (GWh) per year. Equivalent to 30% of the total energy consumed by Quebrada Blanca.
Andes Solar uses approximately 50,000 solar panels covering an area of 800,000 square metres.
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Highland Valley Copper
“In past years, our energy reductions came from energy efficiency projects and involved a small number of people,” said James Myers, Energy Coordinator at Highland Valley Copper (HVC),
“This year, most of our energy and GHG reductions came from reducing equipment wear, minimizing costs or increasing throughput without overloading equipment. By supporting efforts to improve our business, we reduced our energy use and GHG emissions.”
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Highland Valley Copper Efficiency examples
Increasing the capacity of a crusher that was causing a backup of haul trucks. The trucks had sat idling, waiting for their turn to unload, or were diverted to a different crusher several kilometers away.
The density in six ball mills was increased, resulting in improved grinding, and aiding metal recovery, but with less energy. 15 HVC energy/GHG saving projects in 2017
2.35 million litres of diesel saved per year9.1 million kilowatt hours of electricity saved per year7,445 tonnes of GHG emission reductions per year
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Innovation and Technology
Innovation and Technology
Today, the pace of change in mining is getting even faster.
New advancements such as automation and digitalization are increasingly being introduced.
Challenges such as declining ore quality, increasing energy requirements, and climate change create the need for new technological solutions.
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Low Carbon Economy
Short Term Innovation Focus: Target driven reductions of GHG emissions by transitioning from fossil fuel to clean energy sources and introducing transformative mining and processing technologies to reduce the energy intensity of our production.
Medium to Long Term Innovation Focus• Teck will be establishing aggressive GHG targets going forward: all sources of
GHG emissions will be addressed through a combination of strategies including substitution with clean alternatives, replacement with transformative mining and processing technologies and mitigation with emissions capture systems.
Convictions/Beliefs About the Future• The global economy is shifting to cleaner energy and expects industry to do likewise• The mining industry is focusing on initiatives to drive down our carbon footprint• Step change technologies will be required to achieve future GHG reduction targets
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Achieving Further GHG Reductions Our GHG Profile (scope 1 and 2)
Trail – process emissions
Mobile Equipment
Stationary Combustion
Fugitive Emissions
Purchased electricity
On-site power generation
Power Supply
Coal bed methane
Diesel
Methane, CO
Hydro, Coal, Diesel
Natural Gas, Coal
Carbon
10.9%
3.6%
19.5%
25.4%
34.5%
328kT
108kT
586kT
765kT
1,034kT
183kT
Coal Dryers, Trail Furnace
Heavy Mining Equipment
Source
6.1%
2017 Emissions Profile
3,009kT
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Carbon Capture
ElecBus Energy
Storage
Low Carbon Economy: Milestones and value drivers to deliver vision
Fugitive Methane
ZEVLV
Scan
Pilot
Implement/Replicate
Mobile Equipment (34.5% of 2017) Stationary Combustion (25.4%) Emissions Capture (23.1%) Power Supply (17%)
LNG
ZEVHME
DryerCapture
AMH
Wintering Hills
Sun Mine
Coarse Coal
Value drivers GHG reduction to support Teck2040 goals
CAHM
RDORenew
Trolley
UG Adopt ICMM
QB Solar
CSG
White Space
Big Ideas Transformational
Grassroots
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Haul Truck OpportunitiesSingle largest GHG opportunity – but one of the most challenging
Trolley Assist• Availability of low-cost, clean power in BC enhances project economics• Can known constraints be overcome?
- Electrical infrastructure – capital cost, maintenance, relocation costs- Mine planning to optimize trolley loads- Payload penalty of pantographs on trucks
Battery Electric• Engaging with OEM’s re development of prototype batteries • Modelling performance in mine simulations • Evaluating impact of autonomous haulage on ideal truck size – smaller
trucks may make BE feasible
Alternative Material Handling• Do innovative technologies such as Ore Sorting positively impact the
feasibility of alternative processes such as In Pit Crushing & Conveying?
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The Electric Vehicle Prize
• Reduce equipment fuel costs• Eliminate GHG emissions• Eliminate DPM, NOx & SOx emissions
Secondary benefits include:• Reduced maintenance costs & downtime • Improved ergonomics (vibration, noise, etc)
Diesel engines ~44% efficient Electric motors ~93% efficient
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Energy Storage
The biggest hurdles to battery adoption are energy density and storage volume. Tesla Model 3
~ 150 Wh/kg~ 800 Wh/L
Diesel~ >13,000 Wh/kg~ >10,000 Wh/L
Haul Trucks
A battery electric Haul Truck would require 15MWh per shift.
At current leading energy densities, the battery required would:
• Weight: ~95 tonnes
• Volume: >18M3
• Cost: $3M
Underground Mining
Canadian UG miners such as Kirkland Lake, Glencore, Goldcorp and Barrick are leading the charge towards battery electric equipment.Reduced ventilation demands are a key driver of the UG value proposition.Smaller equipment also makes UG electrification viable today.
Electric Vehicles
Vehicle electrification is growing rapidly across the globe – in many different sectors, from personal vehicles to transit buses to commercial trucking. Battery Electric is widely regarded as the preferred technology – however, Plug-In Hybrid and Fuel Cell Electric technologies also fulfil the market need for extended range beyond the current capacity of battery.
Pick your Power
The EV market is made up of several categories:PHEV – Plug In Hybrid Vehicles are battery-powered, with a fossil fuel-powered generator to extend rangeBEV – Battery Electric Vehicle. FCEV – Fuel Cell Electric Vehicles have a Proton Exchange Membrane (PEM) Cell that utilizes H2 to generate electricity.
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Build knowledge
Early adoption of electric vehicles is a key element of understanding operation & maintenance processes and design requirements. Engaging with suppliers and operators is another avenue to building knowledge and creating demand awareness with OEM’s.
Collaboration through groups such as the ICMM will be a crucial element of both knowledge acquisition and driving industry development.
Catalyzed by Funding
Government funding is available through a number of sources for projects aimed at reducing Greenhouse gas emissions.
Mining Fleet Electrification
Major challenges need to be overcome to enable mining equipment to be electrified.
Batteries & charging
Significant advancements in battery technology will be required to deliver the power necessary for large, loaded haul trucks to climb out of pits.
With the desire for continuous operation, innovative charging technology would allow trucks to recharge “on the fly” – e.g. trolley or inductive charging.
Industry commitment
Given the relatively low volume of mining equipment sold globally, the cost of the R&D required to design and manufacture equipment specifically for electric power trains will be very high.
Consortia such as ICMM are working to align the interests and efforts of mining companies, OEM’s and technology providers.
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Thank You!
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Peter WanLead, Technology & Innovation