BHP’s proposed takeover of Anglo validates copper focus, Teck CEO says
Teck Resources Ltd. saw copper production surge in the first quarter compared with a year earlier as its Quebrada Blanca expansion project ramped up toward full production.
The roughly $8.7-billion US project in Chile is at the heart of the company’s efforts to shift focus towards metals crucial to the energy transition.
The company completed all major construction at the project in the quarter, including a molybdenum plant and a ship loader that allowed it to start shipping mine concentrate, chief executive Jonathan Price told investors Thursday during a conference call to discuss the company’s latest results.
“It was a beautiful sight,” said Price, who was in there to see the second shipment of concentrate loaded onto a ship.
Price made the comments the same day as news broke that BHP Group has made a takeover offer worth about $39 billion US for Anglo American PLC.
BHP said a key reason for the acquisition attempt was to increase its exposure to “future facing” commodities through Anglo’s copper assets, a premise that Price said validates Teck’s own strategy.
“The proposed or potential takeover here, of Anglo by BHP, just reinforces the attractiveness of the long-term fundamentals for copper markets. And, you know, long-term fundamentals around which we have centred our strategy for the years ahead.”
Copper is expected to be in high demand in the energy transition as everything from electric vehicles to wind turbines to the power grid to connect them will all require reams of the red metal.
“It’s an exciting time in the copper market,” said Price, as copper prices have recently jumped up past $4.40 US a pound from a first-quarter average of $3.83 US.
“The world is fast turning from debating whether demand for copper would really rise so quickly, to wondering where and how we’re going to find more.”