Quintette Project Update North East Coal Forum Jeff Butcher - PowerPoint PPT Presentation

Quintette Project Update North East Coal Forum Jeff Butcher October 10, 2013 Processing Superintendent

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 # 1 Producer of steelmaking coal in N. America # 2 Exporter of steelmaking coal in world 80% of Canadian steelmaking coal production Over 4,400 employees across six steelmaking coal operations

Our Coal Resources are Sufficient for Over 100 Years of Production Long-Life Quality Coal Reserves and Resources • Approximately 35 years of reserves 1.02 billion clean tonnes • Significant resources to Reserves support existing reserve base • More than 95% of 3.66 billion in situ tonnes Measured & our reserves and Indicated Resources resources are hard coking coal 2.22 billion in situ tonnes Inferred Resources 6 Source: Teck Resources Limited

Our Operations Have a Robust Supply Chain Legend CN Rail CP Rail Quintette 7

We are a Leading Supplier to Steel Producers Around the World Teck Coal – high quality, consistency, reliability, long-term supply North Europe America Asia ex.China ~15% ~5% ~45% China ~30% South America ~5% Source: Teck Resources Limited 8

Quintette Background

Growing Coal Production Quintette Restart Update 10

Quintette History • 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 11

Growing Coal Production Quintette 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 12

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 13

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 15

Thermal Dewatering Traditionally most flexible and easiest, but most energy intensive • Requires heating of large volume of air, energy inefficient. 16

Drain & Rinse Coarse Coal Drain and Rinse • Magnetite recovery and proper moisture Fine Coal Drain and Rinse • Ash separation and moisture reduction 17

Mechanical Dewatering • Mechanical dewatering through centrifugal force, air pressure or vacuum • Opportunity to add as much energy to minimize the requirement for thermal drying 18

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 20

Coal Processor’s Guide Stone 21

Questions? Thank You 22