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Teck Resources Overview & Strategy

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Company Spotlight

Don Lindsay, President and CEO of Teck Resources, provides an overview and strategy update. Teck Resources is building a leading diversified mining company through its coal, copper, zinc, and energy businesses. Teck aims to grow production in its coal, copper, and zinc operations through low-cost expansions and conversions of resources into cash flow. Teck also seeks to create value from its gold and oil sands assets through exploration, development, and potential sales.

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Overview & Strategy Don Lindsay President & CEO
Forward Looking Information 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 can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. 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 our future production, our statements as to management’s expectations with respect to, among other things, business and financial prospects, the size and quality of Teck’s development projects and the timing and outcomes of those projects, our production growth profile including but not limited to our potential growth in copper production, mine lives and mineral reserves and resources, future trends, plans, strategies, objectives and expectations, including with respect to future operations and projects, progress in development of mineral and oil sands properties, capital and mine production costs, demand and market outlook for commodities, future commodity prices and the financial results, cash flows and operations of Teck. 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, interest rates, the supply and demand for, inventories of, and the level and volatility of prices of coal, zinc, copper and gold and other primary metals and minerals produced by Teck as well as oil, natural gas and petroleum products, future coal sales volumes of Teck, potential proceeds from the sale of non-core assets of Teck, the timing of receipt of regulatory and governmental approvals for Teck’s development projects and other operations, Teck’s costs of production and production and productivity levels, as well as those of its competitors, power prices, market competition, the accuracy of Teck’s reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, the resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, and the future operational and financial performance of the company generally. The foregoing list of assumptions is not exhaustive.
Forward Looking Information Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: unanticipated developments in business and economic conditions in the principal markets for Teck’s products or in the supply, demand, and prices for metals and other commodities to be produced, changes in power prices, changes in interest and currency exchange rates, inaccurate geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral or oil and gas reserves and resources), changes in taxation laws or tax authority assessing practices, legal disputes or unanticipated outcomes of legal proceedings, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of permits or government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), decisions made by our partners or co-venturers, political risk, social unrest, lack of available financing for Teck or its partners or co-venturers, and changes in general economic conditions or conditions in the financial markets. 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 United States Securities and Exchange Commission. 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.
TECK RESOURCES Management Changes & Updates Doug Horswill Senior Vice President Marcia Smith Senior Vice President Sustainability & External Affairs Rob Scott Senior Vice President Zinc 1
TECK RESOURCES Management Changes & Updates Robin Sheremeta Vice President Operations, Coal Bill Fleming Vice President Engineering, Projects & Business Improvement, Coal Bob Kelly Vice President Health & Safety 2
TECK RESOURCES Management Changes & Updates Alex Christopher Vice President Exploration Colin Joudrie Vice President Business Development Keith Stein Vice President Projects 3
TECK RESOURCES – DIVERSIFIED PORTFOLIO Building a Leading Diversified Mining Company # 1 Producer of steelmaking coal in N. America # 2 Exporter of metallurgical coal in world # 3 Zinc miner in world (1) Growing Copper business Note 1: Wood Mackenzie, 2012 4
TECK RESOURCES–DIVERSIFIED PORTFOLIO Strong Global Presence – 2011 Revenue by Region Europe N. America 19% Asian ex. 20% China 40% China 15% S. America* 6% Source: Teck Resources, 2011 5
TECK RESOURCES – STRONG ORGANIC GROWTH ‘Stay the Course’ Strategy Coal Copper Zinc Energy Low-cost Industry Brownfield Building Incremental Closures Expansion Resources Growth Looming Converting Resources to Cash Flow 6
TECK RESOURCES Global and China Growth in Perspective Global Real GDP per Capita Growth China’s GDP Growth in Perspective 10 Present Day Growth: Advanced Economies 7,000 7-8% growth = $550 Bn GDP growth (annualized quarterly percent change) Emerging and Developing Economies GDP would have to slow to <3.5% to 8 6,000 mirror historical absolute growth Real GDP Growth 5,000 US$, billions 6 4,000 5 to 7 years ago: 10-13% growth = $250 to $350 billion GDP growth 4 3,000 2,000 2 1,000 0 0 IMF – World Economic Outlook (WEO), Aug 2012 China GDP (current prices), IMF 7
TECK RESOURCES China: Inland Development to be a Driver for Strong Domestic Growth China’s Regional GDP Capita • Coastal regions mirror (RMB, thousands) developed countries, however 70 overall China remains below the Inland regions global GDP/capita average 60 playing ‘catch-up’ 50 Eastern • ‘Shrinking’ China being achieved Central Western via more rail, airports, and roads 40 as well as telecom networks 30 20 • Manufacturing relocation speeding up inland development 10 and growth in personal incomes 0 Source: NBS 8
TECK RESOURCES An Employee – Led Effort to Define Sustainability • Increasing societal expectations, public awareness and scrutiny • Managing sustainability issues critical to maintaining ability to operate • Our approach to sustainability based on six interconnected areas of focus • Water our most material sustainability issue 9
TECK RESOURCES Exploration’s Role at Teck “Mine the “Mine the Generative Evaluations Market” Market” programs Support Evaluations Intelligence Discovery Acquisition Greenfields Drill Projects Advanced Projects Resource Mine Site Brownfields Target Testing Development Reserves Geoscience Technical Project Expertise Management 10
TECK RESOURCES Gold Strategy • To create and realize value in the gold business • Division operates similar to a junior gold company • Continue to explore, find, and develop reserves and resources • To create a gold asset base with a market value of +$1B 11
TECK RESOURCES Steelmaking Coal Business Unit • Teck has the highest operating Steelmaking Coal Operating Profit (LTM to June 30, 2012 – US$ millions) profit steelmaking coal 4,000 business in the industry • Teck has the highest proportion 3,000 of hard coking coal production • Cost management efforts 2,000 contributing to Teck’s strong operating profit position 1,000 • Potential re-start of Quintette operation with 3 to 4Mtpa production target 0 Teck BHP Rio Tinto* Anglo Xstrata Source: Company Reports 12
TECK RESOURCES Copper Business Unit Rolling 4-Quarter Contained in • Q3 annualized production run-rate Concentrate & Cathode ~400ktpa 360 Record • Near-term incremental copper improvements production 335 • Strong portfolio of potential growth projects 310 • Long-term potential could see production double 285 260 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 11 12 12 12 13
TECK RESOURCES Zinc Business Unit Top 10 Global Zinc Producers • Growing zinc demand By Company (kt Zn) 1200 • Top tier zinc assets: Red Dog one Ranked 3rd of the world’s largest zinc largest 1000 operations global zinc producer 800 • Excellent exploration potential Teck 600 • Several key closures on the horizon that are expected to 400 impact supply 200 0 Source: Wood Mackenzie LTO Q2 2012 14
TECK ENERGY – A CLOSER LOOK Energy Business Unit Contingent Bitumen Resource Energy Business Unit Today: billion (billion barrels) bbls 3,500 • Teck’s share: ~3.5 billion barrels of contingent bitumen 3,000 Building resource (not including Lease Resources 421) 2,500 2,000 • 20% interest in Fort Hills 1,500 • 100% interest in Frontier/ Equinox 1,000 500 • 50% interest in Lease 421 0 2007 2008 2010 2012 15
TECK RESOURCES Projects • Highland Valley Mill Modernization • Quebrada Blanca Phase II • Relincho • Quintette 16
TECK RESOURCES Building a Leading Diversified Mining Company Steelmaking Growing high quality production Coal Crucial raw material for steelmaking Copper Expanding production Strong assets geared toward future growth World class operations Zinc 1st quartile cash costs Emerging oil producer Energy Creating value in Oil Sands assets Gold Value creation / realization explore, find, develop…sell 17

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Teck Resources Overview & Strategy

  • 1. Overview & Strategy Don Lindsay President & CEO
  • 2. Forward Looking Information 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 can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. 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 our future production, our statements as to management’s expectations with respect to, among other things, business and financial prospects, the size and quality of Teck’s development projects and the timing and outcomes of those projects, our production growth profile including but not limited to our potential growth in copper production, mine lives and mineral reserves and resources, future trends, plans, strategies, objectives and expectations, including with respect to future operations and projects, progress in development of mineral and oil sands properties, capital and mine production costs, demand and market outlook for commodities, future commodity prices and the financial results, cash flows and operations of Teck. 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, interest rates, the supply and demand for, inventories of, and the level and volatility of prices of coal, zinc, copper and gold and other primary metals and minerals produced by Teck as well as oil, natural gas and petroleum products, future coal sales volumes of Teck, potential proceeds from the sale of non-core assets of Teck, the timing of receipt of regulatory and governmental approvals for Teck’s development projects and other operations, Teck’s costs of production and production and productivity levels, as well as those of its competitors, power prices, market competition, the accuracy of Teck’s reserve and resource estimates (including with respect to size, grade and recoverability) and the geological, operational and price assumptions on which these are based, the resolution of environmental and other proceedings, our ongoing relations with our employees and partners and joint venturers, and the future operational and financial performance of the company generally. The foregoing list of assumptions is not exhaustive.
  • 3. Forward Looking Information Events or circumstances could cause actual results to differ materially. Factors that may cause actual results to vary include, but are not limited to: unanticipated developments in business and economic conditions in the principal markets for Teck’s products or in the supply, demand, and prices for metals and other commodities to be produced, changes in power prices, changes in interest and currency exchange rates, inaccurate geological or metallurgical assumptions (including with respect to the size, grade and recoverability of mineral or oil and gas reserves and resources), changes in taxation laws or tax authority assessing practices, legal disputes or unanticipated outcomes of legal proceedings, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of permits or government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), decisions made by our partners or co-venturers, political risk, social unrest, lack of available financing for Teck or its partners or co-venturers, and changes in general economic conditions or conditions in the financial markets. 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 United States Securities and Exchange Commission. 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.
  • 4. TECK RESOURCES Management Changes & Updates Doug Horswill Senior Vice President Marcia Smith Senior Vice President Sustainability & External Affairs Rob Scott Senior Vice President Zinc 1
  • 5. TECK RESOURCES Management Changes & Updates Robin Sheremeta Vice President Operations, Coal Bill Fleming Vice President Engineering, Projects & Business Improvement, Coal Bob Kelly Vice President Health & Safety 2
  • 6. TECK RESOURCES Management Changes & Updates Alex Christopher Vice President Exploration Colin Joudrie Vice President Business Development Keith Stein Vice President Projects 3
  • 7. TECK RESOURCES – DIVERSIFIED PORTFOLIO Building a Leading Diversified Mining Company # 1 Producer of steelmaking coal in N. America # 2 Exporter of metallurgical coal in world # 3 Zinc miner in world (1) Growing Copper business Note 1: Wood Mackenzie, 2012 4
  • 8. TECK RESOURCES–DIVERSIFIED PORTFOLIO Strong Global Presence – 2011 Revenue by Region Europe N. America 19% Asian ex. 20% China 40% China 15% S. America* 6% Source: Teck Resources, 2011 5
  • 9. TECK RESOURCES – STRONG ORGANIC GROWTH ‘Stay the Course’ Strategy Coal Copper Zinc Energy Low-cost Industry Brownfield Building Incremental Closures Expansion Resources Growth Looming Converting Resources to Cash Flow 6
  • 10. TECK RESOURCES Global and China Growth in Perspective Global Real GDP per Capita Growth China’s GDP Growth in Perspective 10 Present Day Growth: Advanced Economies 7,000 7-8% growth = $550 Bn GDP growth (annualized quarterly percent change) Emerging and Developing Economies GDP would have to slow to <3.5% to 8 6,000 mirror historical absolute growth Real GDP Growth 5,000 US$, billions 6 4,000 5 to 7 years ago: 10-13% growth = $250 to $350 billion GDP growth 4 3,000 2,000 2 1,000 0 0 IMF – World Economic Outlook (WEO), Aug 2012 China GDP (current prices), IMF 7
  • 11. TECK RESOURCES China: Inland Development to be a Driver for Strong Domestic Growth China’s Regional GDP Capita • Coastal regions mirror (RMB, thousands) developed countries, however 70 overall China remains below the Inland regions global GDP/capita average 60 playing ‘catch-up’ 50 Eastern • ‘Shrinking’ China being achieved Central Western via more rail, airports, and roads 40 as well as telecom networks 30 20 • Manufacturing relocation speeding up inland development 10 and growth in personal incomes 0 Source: NBS 8
  • 12. TECK RESOURCES An Employee – Led Effort to Define Sustainability • Increasing societal expectations, public awareness and scrutiny • Managing sustainability issues critical to maintaining ability to operate • Our approach to sustainability based on six interconnected areas of focus • Water our most material sustainability issue 9
  • 13. TECK RESOURCES Exploration’s Role at Teck “Mine the “Mine the Generative Evaluations Market” Market” programs Support Evaluations Intelligence Discovery Acquisition Greenfields Drill Projects Advanced Projects Resource Mine Site Brownfields Target Testing Development Reserves Geoscience Technical Project Expertise Management 10
  • 14. TECK RESOURCES Gold Strategy • To create and realize value in the gold business • Division operates similar to a junior gold company • Continue to explore, find, and develop reserves and resources • To create a gold asset base with a market value of +$1B 11
  • 15. TECK RESOURCES Steelmaking Coal Business Unit • Teck has the highest operating Steelmaking Coal Operating Profit (LTM to June 30, 2012 – US$ millions) profit steelmaking coal 4,000 business in the industry • Teck has the highest proportion 3,000 of hard coking coal production • Cost management efforts 2,000 contributing to Teck’s strong operating profit position 1,000 • Potential re-start of Quintette operation with 3 to 4Mtpa production target 0 Teck BHP Rio Tinto* Anglo Xstrata Source: Company Reports 12
  • 16. TECK RESOURCES Copper Business Unit Rolling 4-Quarter Contained in • Q3 annualized production run-rate Concentrate & Cathode ~400ktpa 360 Record • Near-term incremental copper improvements production 335 • Strong portfolio of potential growth projects 310 • Long-term potential could see production double 285 260 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 10 10 10 10 11 11 11 11 12 12 12 13
  • 17. TECK RESOURCES Zinc Business Unit Top 10 Global Zinc Producers • Growing zinc demand By Company (kt Zn) 1200 • Top tier zinc assets: Red Dog one Ranked 3rd of the world’s largest zinc largest 1000 operations global zinc producer 800 • Excellent exploration potential Teck 600 • Several key closures on the horizon that are expected to 400 impact supply 200 0 Source: Wood Mackenzie LTO Q2 2012 14
  • 18. TECK ENERGY – A CLOSER LOOK Energy Business Unit Contingent Bitumen Resource Energy Business Unit Today: billion (billion barrels) bbls 3,500 • Teck’s share: ~3.5 billion barrels of contingent bitumen 3,000 Building resource (not including Lease Resources 421) 2,500 2,000 • 20% interest in Fort Hills 1,500 • 100% interest in Frontier/ Equinox 1,000 500 • 50% interest in Lease 421 0 2007 2008 2010 2012 15
  • 19. TECK RESOURCES Projects • Highland Valley Mill Modernization • Quebrada Blanca Phase II • Relincho • Quintette 16
  • 20. TECK RESOURCES Building a Leading Diversified Mining Company Steelmaking Growing high quality production Coal Crucial raw material for steelmaking Copper Expanding production Strong assets geared toward future growth World class operations Zinc 1st quartile cash costs Emerging oil producer Energy Creating value in Oil Sands assets Gold Value creation / realization explore, find, develop…sell 17