Don Lindsay Recap
The copper industry is changing. But as copper production in the United States and Canada has declined, producers have turned to places like Chile for new reserves. In this article, we are going to explore a little bit about what is happening in the copper industry, and how one company is adapting to these changes.
Don Lindsay President and CEO of Teck Resources Inc., one of world’s largest diversified mining companies with significant operations in Chile, discusses their growth plan for the future that includes adding even more capacity in Chile.
“The copper industry is changing. But as copper production in the United States and Canada has declined, producers have turned to places like Chile for new reserves.”
He points out that Chile’s only current producing mines are Caracoles and La Union. However, to make up for declining output in Canada and the US, Teck is opening up new mines in Chile as well as acquiring companies in both Canada and Chile to expand its mining footprint.
Lindsay also talks about how the Chilean government is helping facilitate this growth by working with Teck Resources to reduce reliance on foreign mining companies and promoting mining investment through incentives that include access to low-cost power from hydroelectric sources.
He also discusses Teck Resources deal to acquire Colorado-based Twin Metals for $1.4 billion. The purchase was done in part to boost its position in the Duluth Complex, one of the largest undeveloped copper-nickel deposits in the world and majority owned by Minas Basin which is located on the border between Minnesota and Ontario.
Lindsay explains that the deal will help increase production of the Duluth Complex, where Twin Metals has a 50% agreement to produce and sell. He also comments that they are looking at other options to expand production in Chile as the company attempts to increase the long-term sustainability of its operations there.
He also discusses how Chilean miners have responded to lower prices. He says, “We’ve seen a very strong response from Chile that reflects not only their strong competitiveness in Latin America but also that they’re really focusing on their development and having more of an eye on what is it going to take in order for them to maintain and grow their operations. See more information