2
Trail Operations
Trail Operations:
• 295,000 tonnes of zinc• 85,000+ tonnes of lead
Waneta Dam:•475 MW Capacity •Approx 2,800 GW.h annually
3
Trail Operations
0
100
200
300
400
2002 2003 2004 2005 2006
Metals Power
Operating ProfitMillions $
Power
Zinc
Sulphur Products
Misc.Specialty
Metals
Precious Metals
Lead
Revenue by Major Product
61%8%
17%
5%
4%3%
2%
Flexible productionDiversified revenueDiversified Operating Profit
4
ZincOperations
LeadOperations
GasHandling
Zinc FumeResidues
ZincIndium
GermaniumCadmium
LeadSilverGold
Co-Products
Sulphuric AcidSulphur Dioxide
Sulphate Fertilizer
Trail Operations Flowsheet
One of the largest integrated zinc/lead smelter complexes in the worldCapability to process wide range of feed materials19 processes20 products and growing
5
Production PerformanceImprovements
ZINC
130,000160,000190,000220,000250,000280,000310,000
2001 2002 2003 2004 2005 2006
Tonn
es
INDIUM
0
10,000
20,00030,000
40,000
50,000
60,000
2001 2002 2003 2004 2005 2006
Kg
GERMANIUM
05,000
10,00015,00020,00025,00030,00035,000
2001 2002 2003 2004 2005 2006
Kg
• Record refined zinc production in 2006
• Steady improvement in indium production
• Improved germanium production through:
• Increased inputs
• Recovery improvements
6
Labour Productivity Improvements1999 – 2006 (man hr/t Zn)
2.00
2.50
3.00
3.50
4.00
4.50
5.00
5.50
6.00
6.50
1999 2000 2001 2002 2003 2004 2005 2006
Significant productivity improvement through:
• Business rationalization
• Maintenance improvements
• Improved reliability
• Process
• Equipment
Top Quartile labour productivity
Source: Brook Hunt, Zinc Smelter Study
7
Trail Operations - 2004Cash Conversion Cost (c/lb of Zn)
Teck Cominco: Trail, BC
Cumulative Total Slab Zinc (kt)Source: Brook Hunt Zinc Smelter Study
0
10
20
30
40
50
0 2000 4000 6000 8000
• #2 position world wide
• Debottlenecking –continuous improvements
8
Business Development Trail
• Electronics Recycling
• Alternative Feeds
• Slags
• Residues
• Advanced Materials
• Low Alpha Lead
• Germanium
9
Waneta Dam and Reservoir
71 Line Pend
d’Oreille River
49th Parallel
Columbia River
Power Revenue
0
20
40
60
80
100
120
140
2002 2003 2004 2005 2006
Mill
ions
$
Generation Capacity
300
350
400
450
500
1995
1996
1997
1998
1999
2001
2002
2003
2004
2005
2006
2007
MW
Uni
t 3 Uni
t 1 Uni
t 2 Uni
t 4Built in 1954
475 MW Capacity
Secure low cost power
Transmission connection into US
10
Teck Cominco Energy AssetsInterconnections – Trail and Area
Lower Arrow Lake
Kootenay River
3 1 2
4
FortisBCPower Plants
KeenleysideDam
Col
umbi
a R
iver
Pend d’OreilleRiver
7 Mile Dam
Trail Smelter (210 MW
load)
Selkirk Substatio
n
NelwaySubstatio
n
Kootenay Lake
Kootenay
River
CANADA
USAUSA Grid
Boundary Dam
Grand Coulee Dam
Reservoir
230kV Lines
500kV
Line
4-60kV Lines
230 kV Lines (TCML 150 MW
Reserved Capacity)
230kV Line
500kV
Line
500kV Line
Crawford Bay
Kimberley Sullivan
Mine230kV Lines
N
S
EW
TCML
BC Hydro
FortisBC
CPC
161kV Line
500kV Line
TCML 71 Line 230 kV
– 15 miles 370 MW
KCP
Brilliant Dam &
Substation
Waneta Power
Plant (450 MW)
Boundary Substatio
n
• Security of supply through Canal Plant Agreement
• Supply in excess of metallurgical needs –1/3 sold
• Highly integrated with provincial electrical infrastructure
11
Trail PowerWaneta Upgrade Projects
Waneta Hydro Station Construction
Unit Life Extension & UpgradeInvestment of over $50 million Four generating units upgraded#4 Unit completed in January 2007Extends life of each unit for another 40 – 50 yearsOverall capacity increased by 100 MW.
Waneta Hydro Station Investment of $40 millionReplacement of obsolete switching stationScheduled completion November 2007Station Services completed in 2008
Waneta Unit 4 Turbine