Sustainability Update Conference Call & Webcast July 15, 2015 - - PowerPoint PPT Presentation

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Sustainability Update Conference Call & Webcast July 15, 2015 - - PowerPoint PPT Presentation

Sustainability Update Conference Call & Webcast July 15, 2015 Forward-Looking Information Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private


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SLIDE 1

Sustainability Update

Conference Call & Webcast

July 15, 2015

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Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) and comparable legislation in other provinces. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include statements relating to management's expectations with respect to our business and sustainability strategies, our sustainability goals and expectation that we will achieve them in the established timeframes. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general business and economic conditions, technological solutions, receipt of regulatory approvals and ongoing relations with interested parties. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: regulatory action, changes in laws and governmental regulations, development and use of new technology, natural disasters and adverse weather conditions, changes in commodity prices, general business and economic conditions, and the future

  • peration and financial performance of the company generally.

Certain of these risks are described in more detail in Teck’s annual information form available at www.sedar.com and in public filings with the SEC. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws. Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to invest in securities.

Forward-Looking Information

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Agenda

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About Us Welcome Our Approach to Sustainability 2014 Highlights Performance & Next Steps Questions

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About Us

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About Us

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Top ten copper miner in the Americas #3 zinc miner in the world Building an energy business # 1 Producer of steelmaking coal in North America # 2 Seaborne exporter of steelmaking coal globally Safety is our core value Implementing a comprehensive Sustainability Strategy

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About Us

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  • Headquartered in

Vancouver, Canada, with

  • perations in the Americas
  • Strategy focused on long

life assets in stable jurisdictions

  • Sustainability: Key to

managing risks and developing opportunities

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SLIDE 7

Safety Performance

  • Developed and implemented a

new High-Potential Risk Control strategy at all

  • perations
  • Total reportable injury

frequency 25% lower than 2013

  • High-potential incident

frequency rate down by 22% year-over-year

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Operational Performance

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  • Achieved record throughput at

Antamina, record zinc production at Red Dog mine and record steelmaking coal production

  • Executed a number of major

capital projects:

  • Mill Optimization Project at

Highland Valley Copper

  • Restarted Pend Oreille mine
  • New acid plant at our

Trail Operations

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SLIDE 9

Financial Performance

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Revenues $8.6

billion

Gross Profit

(before depreciation & amortization)

$2.9

billion

Adjusted Profit $452

million

Dividends Paid $0.90

per share

Balance Sheet Remained Strong in 2014

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Our Approach to Sustainability

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Our Sustainability Strategy

  • In 2011, we launched our formal

sustainability strategy

  • Organized around 6 focus areas

representing our most material sustainability challenges and opportunities

  • Set short-term (2015) and long-term

(2030) goals and vision for each area

  • On track to achieve all of our 2015

goals this year

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Our Approach to Materiality

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  • Comprehensive materiality review of sustainability strategy every five

years to inform long-term strategy

  • Annual materiality assessment process to identify and address

current issues

Reviewing with internal and external sources Quantifying impacts under G4 Guidelines Soliciting internal feedback Developing materiality matrix Receiving feedback from COI panel

Our Annual Materiality Process

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2014 Highlights

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Community: Creating mutual benefits

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2014 Highlights  Completed Human Rights Assessments at all operations  10 formal agreements reached with Indigenous Peoples in 2014

  • Delivering shared value: providing

local employment and economic benefits

  • Minimizing negative impacts: including

those affecting the local environment and social landscape

  • Respect and transparency: Developing

and maintaining trust-based relationships with local communities

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Case Study

Community Environmental Panel in Andacollo

  • Concerns expressed by

community group regarding dust

  • Formed a joint community-Teck

Environmental Panel to:

  • Facilitate dialogue
  • Share data and information
  • Work together on solutions
  • Community still has questions &

concerns

  • But we now have a shared space

to communicate and focus on shared environmental priorities

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Case Study

Working with Indigenous Peoples in the Arctic

  • Red Dog celebrated 25 years

in 2014

  • Unique agreement between

Teck as operator and NANA who own the land

  • Benefits:

 $1 billion in proceeds for NANA from the mine  51% of employees are NANA shareholders  Protecting subsistence way of life  Long life, world class zinc mine

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Biodiversity: Achieving a net positive impact

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Achieving a net positive impact:

  • Avoid impacts where possible
  • Minimize impacts that are

unavoidable

  • Rehabilitate affected areas
  • Offset any residual impacts

2014 Highlights  Completed Biodiversity Management Plans at 8 operations to date  Completed significant land/habitat conservation actions in the Elk Valley and Quintette regions

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Case Study

Caribou Recovery Program

  • Supported regional multi-

stakeholder initiative to address declining caribou in northeast BC

  • Caribou identified and

transported to a remote, secure penning site to give birth

  • 9 calves born in protective

shelter in 2014; 7 born in 2015

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Water: Looking at the entire watershed

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  • Moving towards a watershed-based

approach to our use and management of water

  • Established company wide and site-

specific water balances

  • Water conservation, reuse and

recycling is a priority

 Operations have developed site-specific water targets.  Government approval of our Elk Valley Water Quality Plan in British Columbia 2014 Highlights

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Case Study

Elk Valley Water Quality Plan

  • Developed a groundbreaking

watershed-based approach to managing water quality near

  • ur five steelmaking coal
  • perations in B.C.
  • Over 160 written feedback

submissions received during consultation and 700 pieces of science-based advice from expert panel

  • Government-approved plan

includes water treatment facilities, water diversions, R&D and monitoring

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Energy: Improving efficiency, reducing emissions

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2014 Highlights  Reduced GHG emissions by 170 kt to the end of 2014  Reduced energy consumption at existing

  • perations by 1,050 terajoules since 2011

 16.8 MW of alternative energy generation

Importance of energy to Teck:

  • One of our most significant
  • perational expenditures
  • Rising cost of carbon is a key issue

for us to monitor and manage

  • Recognize industry’s role in reducing

GHGs and addressing climate change

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SLIDE 22

Case Study

Improving Efficiency, Reducing GHGs

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  • Haul truck efficiency initiatives cut

diesel use by 10M litres and GHG emissions by 30,000 tonnes per year

  • Diesel cost savings of ~$10M per

year

  • Undertaking pilot project to

evaluate converting haul trucks to LNG/diesel blend

  • Potential to reduce annual coal

fleet fuel use by $27M, and GHG emissions by 35,000 tonnes

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Performance and Path Forward

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Community

  • Percentage of local employees in senior

management roles

  • Feedback received by Communities of

Interest

  • Percentage of spending on locally

based suppliers Energy

  • Direct and indirect GHG emissions
  • Energy and carbon intensity for

steelmaking coal production

  • Total energy use

Our People

  • Voluntary turnover number by age and

gender

  • Total Recordable Injury Frequency
  • Lost Time Injury Frequency (LTIF)

Biodiversity

  • Area reclaimed each year
  • Total area of disturbance to date

Water

  • New water use
  • Water reused/recycled
  • Total water inputs/outputs

Materials Stewardship

  • Hazardous waste recycled on and off-

site

  • Non-hazardous waste recycled on and
  • ff-site

Sustainability Performance and Metrics

Examples

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Visit www.tecksustainability.com to: access performance data, compare progress against our goals, and view material topics

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Sustainability Strategy Review

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  • Complete our short-term sustainability goals by the end of 2015
  • Conducted a comprehensive review of our sustainability strategy
  • We have decided to:
  • Maintain five of our current focus areas: Community, Water,

Energy, Biodiversity, and Our People

  • Add a new focus area on Air
  • Reviewing Materials Stewardship
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External Recognition

Received the PDAC 2014 Environmental and Social Responsibility Award Best 50 Corporate Citizens in Canada 2015 On the Dow Jones Sustainability World Index five years in a row One of top 100 most sustainable companies in the world and one of Canada’s most sustainable companies Top 50 Socially Responsible Corporations in Canada Received the Globe Foundation Environment Award in 2014

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Summary

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  • Incorporate sustainability

into every decision

  • Achieve our sustainability

goals while also improving efficiency and reducing costs

  • Committed to doing the right

thing for the environment, people and communities

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Greg Waller Vice President, Investor Relations and Strategic Analysis Teck Resources Limited T: 604.699.4014 E: greg.waller@teck.com

Questions?

Mark Edwards Vice President, Community and Government Relations Teck Resources Limited T: 604.699.4372 E: mark.edwards@teck.com www.tecksustainability.com