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Teck Resources Limited Suite 3300, 550 Burrard Street Vancouver, British Columbia, Canada V6C 0B3 +1.604.699.4000 Tel +1.604.699.4750 Fax www.teck.com
Setting Possibilities in Motion
Resourceful Teck 2013 A
u al R
Resourceful Teck 2013 Annual Report
Our Class A common and Class B subordinate voting shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B, respectively.
Our Class B subordinate voting shares are listed on the New York Stock Exchange under the symbol TCK.
Dividends declared on Class A and B shares
Amount per share Payment Date $0.45 July 2, 2013 $0.45 January 2, 2014
These dividends are eligible for both the federal and provincial enhanced dividend tax credits.
Shares Outstanding at December 31, 2013
Class A common shares 9,353,470 Class B subordinate voting shares 566,904,857
Karen L. Dunfee, Corporate Secretary
Our annual meeting of shareholders will be held at 11:00 a.m. on Wednesday, April 23, 2014, in the Waterfront Ballroom, Fairmont Waterfront Hotel, 900 Canada Place Way, Vancouver, British Columbia.
Inquiries regarding change of address, stock transfer, registered shareholdings, dividends or lost certificates should be directed to our Registrar and Transfer Agent:
CST Trust Company 1600 – 1066 West Hastings Street Vancouver, British Columbia V6E 3X1
CST Trust Company provides an Answerline Service for the convenience of shareholders:
Toll-free in Canada and the U.S. 1.800.387.0825 Outside Canada and the U.S. 1.416.682.3860 Email: email@example.com
American Stock Transfer & Trust Company, LLC 6201 15th Avenue Brooklyn, New York 11219 1.800.937.5449 or 718.921.8124
Email: firstname.lastname@example.org Website: www.amstock.com TTY: 866.703.9077 or 718.921.8386
PricewaterhouseCoopers LLP Chartered Accountants Suite 700 250 Howe Street Vancouver, British Columbia V6C 3S7
Annual Information Form
We prepare an Annual Information Form (AIF) that is filed with the securities commissions or similar bodies in all the provinces of Canada. Copies of our AIF and annual and quarterly reports are available on request or on our website at www.teck.com, on the Canadian Securities Administrators website at www.sedar.com (SEDAR) and on the EDGAR section of the United States Securities and Exchange Commission (SEC) website at www.sec.gov.
On the Cover The images on the cover of our annual report each provide a unique perspective on our four major business units: Copper, Steelmaking Coal, Zinc and Energy.
The copper image is a close-up photograph of a copper plate produced at our CESL facility. The steelmaking coal and zinc sulphide are photomicrographs taken by Teck employee Greg Davison, Senior Process Mineralogist at Applied Research and Technology in Trail, using polished thin sections from our Greenhills and Red Dog operations, magnified 50 times.
The final image is a view of the world at night, representing how people and communities are connected by the shared need for energy.
2013 Highlights 3
Global Operations Map 4
Letter from the Chairman 6
Letter from the CEO 8
Our Business 10
Our People 22
Management’s Discussion and Analysis 38
Financial Overview 58
Consolidated Financial Statements 80
Board of Directors 152
Corporate Information 156
Our Business Teck is a diversified resource company committed to responsible mining and mineral development with business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, British Columbia, Canada, we own or have an interest in 13 mines in Canada, the United States, Chile and Peru, as well as one large metallurgical complex and a wind power facility in Canada. We have expertise across a wide range of activities related to exploration, development, mining and minerals processing including smelting and refining, safety, environmental protection, materials stewardship, recycling and research.
Our corporate strategy is focused on building a broadly diversified resource company, growing our production at existing operations and developing new projects in stable jurisdictions. The pursuit of sustainability guides our approach to business, and we recognize that our success depends on our ability to establish safe workplaces for our people and collaborative relationships with communities.
Mineral reserve and resource estimates for our properties are disclosed in our most recent Annual Information Form, which is available on our website at www.teck.com, or on the Canadian Securities Administrators website at www.sedar.com (SEDAR) and on the EDGAR section of the United States Securities and Exchange Commission (SEC) website at www.sec.gov.
Forward-Looking Statements This annual report contains forward-looking statements. Please refer to the “Caution on Forward-Looking Information” on page 79.
All dollar amounts expressed throughout this report are in Canadian dollars unless otherwise noted.
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2013 Highlights Safety
• Achieved our safest year ever and our third record-setting year in a row for safety.
• Attained a 5.6% lower reportable injury frequency than 2012, and reduced our lost-time injury frequency by 26%.
• Revenues of $9.4 billion and gross profit before depreciation of $3.7 billion.
• Cash flow from operations of $2.9 billion.
• Profit attributable to shareholders of $961 million. Adjusted profit of $1.0 billion, or $1.74 per share.
• Cash balance of $2.8 billion at end of 2013.
• Declared dividends at an annualized rate of $0.90 per share.
Operating and Development
• Achieved record annual coal sales of 26.9 million tonnes as a result of increased global steel production.
• Attained new quarterly record production for copper at 105,000 tonnes in the fourth quarter.
• Achieved record throughput at Antamina, Carmen de Andacollo, Greenhills and Red Dog.
• Received the British Columbia Environmental Assessment Certificate for our Line Creek Phase 2 project, which will maintain production and extend the mine life by 19 years.
• Identified over $380 million of annual, ongoing potential cost savings at our existing operations through our cost reduction program, of which $360 million have been implemented.
• Announced planned construction of the Fort Hills oil sands project with partners Suncor Energy Inc. and Total E&P Canada Ltd.
• Named to the Dow Jones Sustainability World Index (DJSI) for the fourth consecutive year. Our DJSI score placed our sustainability performance in the top 10% of the world’s 2,500 largest public companies.
• Ranked as one of the Global 100 Most Sustainable Corporations by media and investment research company Corporate Knights in January 2014, the second consecutive year we have been included on the list.
Revenue ($ in billions) Profit Attributable to Shareholders ($ in billions) Cash Flow from Operations ($ in billions)
Note: Amounts prepared in accordance with IFRS except for 2009, which were prepared using Canadian GAAP.
Corporate Head Office Corporate Offices
Operations & Projects:
Copper Highland Valley Copper Duck Pond Antamina Quebrada Blanca Carmen de Andacollo Relincho Galore Creek Mesaba
Steelmaking Coal Cardinal River Coal Sites in B.C. · Fording River · Greenhills · Line Creek · Elkview · Coal Mountain Quintette
Zinc Red Dog Trail Operations Pend Oreille
Energy Frontier Fort Hills Wintering Hills
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