Quintette Project UpdateNorth East Coal Forum
Jeff ButcherProcessing Superintendent October 10, 2013
A Leader in Sustainable Mining
• Growth – growing to maximize the value of our resources
• Productivity – continuously improving our efficiency
• Sustainability – responsibly mining for the long term
A Leader in Sustainable Mining
• Growth – growing to maximize the value of our resources
• Productivity – continuously improving our efficiency
• Sustainability – responsibly mining for the long term
Coal Business Unit
A Leading Global, High Quality Steelmaking Coal Producer
Over 4,400 employees across six steelmaking coal operations
# 1 Producer of steelmaking coal in N. America
# 2 Exporter of steelmaking coal in world
80% of Canadian steelmaking coal production
6 Source: Teck Resources Limited
Our Coal Resources are Sufficient for Over 100 Years of Production
• Approximately 35 years of reserves
• Significant resources to support existing reserve base
• More than 95% of our reserves and resources are hard coking coal
Long-Life Quality Coal Reserves and Resources
Reserves
Measured &Indicated Resources
Inferred Resources
1.02 billion clean tonnes
3.66 billion in situ tonnes
2.22 billion in situ tonnes
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Our Operations Have a Robust Supply Chain
LegendCN Rail
CP Rail
Quintette
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Source: Teck Resources Limited
We are a Leading Supplier to Steel Producers Around the World
NorthAmerica
~5%Europe~15%
SouthAmerica
~5%
China~30%
Teck Coal – high quality, consistency, reliability, long-term supply
Asia ex.China~45%
Quintette Background
Growing Coal ProductionQuintette Restart Update
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Quintette History
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• Located in the Peace River Coal Field of northeast B.C.
• Previous operations took place from 1982 to August 2000
• Area of interest is the former Windy Pit (mined from 1997 to closure) and the Window Pit
• The previously mined Mesa, Wolverine and Shikano Pits are considered exhausted
Growing Coal ProductionQuintette Restart Update
• Targeting 2015 production at 3 Mtpa growing to 4 Mtpa
• Major permit (Mines Act Permit Amendment) obtained
• Impact Benefit Agreements with First Nations progressing well
• Substantial infrastructure (plant, electricity) already exists and refurbishing has begun
• Geology simple; coal quality known and valued in the market
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The Path Forward
• Acquisition of Effluent Permit
• Finalization of First Nations agreements
• We are continuing to proceed with detailed engineering work
• If a decision is made in early 2014 to proceed, the operation could be in commercial production in mid-2015
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Summary
• Growth – well advanced in growing from 24Mt to +30Mt, with successful Quintette permitting
• Productivity – significant movement down the cost curve
• Sustainability – continuous improvement in safety, responsible environmental management with ongoing benefits for communities
Plant Dewatering – Dry Coal without Drying
Coal dewatering comprised of 3 stages
• Drain & Rinse
• Mechanical Dewatering
• Thermal Dewatering
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Thermal Dewatering
Traditionally most flexible and easiest, but most energy intensive
• Requires heating of large volume of air, energy inefficient.
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Drain & Rinse
Coarse Coal Drain and Rinse • Magnetite recovery and
proper moisture
Fine Coal Drain and Rinse • Ash separation and
moisture reduction
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Mechanical Dewatering
• Mechanical dewatering through centrifugal force, air pressure or vacuum
• Opportunity to add as much energy to minimize the requirement for thermal drying
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Summary
• Growth – well advanced in growing from 24Mt to +30Mt, with successful Quintette permitting
• Productivity – significant movement down the cost curve
• Sustainability – continuous improvement in safety, responsible environmental management with ongoing benefits for communities
Coal Processor’s Guide Stone
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Coal Processor’s Guide Stone
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Thank You
Questions?