Teck Resources sticking to production targets at Highland Valley Copper despite ongoing strike action

Teck Resources is reporting an increase in its third-quarter profits as stronger production buoyed by record copper and zinc prices boosted its earnings.

The company is also sticking to its production targets for the year, despite a flurry of extreme weather and labour disruptions at its operations in Canada and around the world.

“The weather we experienced in the third quarter is a reminder of the very real impacts of climate change and of why building resilience into our operations matters,” Teck Resources president and CEO Jonathan Price said during a third-quarter conference call Thursday (Oct. 29).

“We continue to adjust our planning processes and operating assumptions to account for climate related risks and our plans consider a range of scenarios.”

During that conference call, Teck Resources said production at the Highland Valley Copper mine near Logan Lake this year should come in at the high end of its targeted range of 115,000 tonnes to 135,000 tonnes.

That’s despite the ongoing strike by over 1,200 workers, who walked off the job on Saturday.

“Our focus is on maintaining safe and environmentally responsible operations while working toward a new collective agreement that is fair to employees and supports the long term competitiveness of the operation,” Price added.

The United Steelworkers Local 7619 is demanding better wages while fighting against what it says is a 25 per cent cut to future pensions, as it notes Teck is on track to generate approximately $2 billion in gross profits this year.

The union is also upset with longstanding safety issues and it alleges contractors working at Highland Valley Copper are being paid much more than union members.

“[Teck comes] in with a terrible contract with concessions on the table and they’re making billions of dollars in gross profits and they best they can do is a minimal impact and then deductions on our pensions,” USW president Kyle Wolff told CFJC on Monday (Oct. 26).

“That’s wrong. That’s just greed.”

Teck Resources said it has contingency plans in place at the Highland Valley Copper mine, which is operating at reduced capacity. The company also said Thursday that work to extend the life of the mine from 2028 to 2046 is more than one-quarter complete.

“The impact on production depends on the duration of the labour action and we do not expect any significant impact on construction timelines for the mine life extension project,” Price said. “More importantly, construction on the project is proceeding safely.”

“Work is underway across the project including tailings and power infrastructure, earthworks, pipelines and brownfield work.”

Workers at Highland Valley have been without a contract since Sept. 30 after their previous five-year contract – which was ratified following a strike vote in 2022 – expired.

Wolff said the union does not expect to return to the bargaining table until Teck significantly improves its offer.

“We’re on strike. That’s how far apart we are,” he said. “We need to fight and we need to stand up for working conditions and for wages because it’s what unions do.”

– With files from The Canadian Press