2015 Sustainability Report Investors' Conference Call

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2015 Sustainability Report Investors’ Conference Call July 12, 2016

Transcript of 2015 Sustainability Report Investors' Conference Call

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2015 Sustainability Report Investors’ Conference CallJuly 12, 2016

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Both these slides and the accompanying oral presentation contain certain forward-looking statements within the meaning of the UnitedStates 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, uncertaintiesand other factors which may cause the actual results, performance or achievements of Teck to be materially different from any futureresults, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statementsinclude statements relating to management's expectations with respect to our business and sustainability strategies, our sustainabilitygoals 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 andeconomic conditions, technological solutions, receipt of regulatory approvals and ongoing relations with interested parties. Theforegoing 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 arenot limited to: regulatory action, changes in laws and governmental regulations, development and use of new technology, naturaldisasters and adverse weather conditions, changes in commodity prices, general business and economic conditions, and the futureoperation 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 filingswith the SEC. Teck does not assume the obligation to revise or update these forward-looking statements after the date of thisdocument or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicablesecurities laws.

Under no circumstances should the information contained herein be considered an offer to sell or a solicitation of an offer to invest insecurities.

Forward-Looking Information

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Agenda

About Teck

Our Approach to Sustainability

2015 Sustainability Risks and Opportunities

Performance Summary

Questions

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About TeckDon LindsayPresident and CEO

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Company Overview

• Diversified resource company, committed to responsible mining and mineral development

• Major business units focused on copper, steelmaking coal, zinc and energy

• Own or have an interest in 12 mines, one large metallurgical complex, a wind power facility, several major development projects in the Americas

• Over 100 years of experience

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Our Approach to Business

Sustainability Best people Balance sheet strength

Nimble response to opportunity

Operating excellence

Long life, low cost assets in stable jurisdictions

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• Zero fatalities in 2015• High Potential Incident Frequency

Reduced by 25% compared to 2014• One-third reduction in Total Reportable

Injury Frequency (TRIF) since 2010• Increase in TRIF in 2015

High Potential Incident Performance

0.0

0.5

1.0

1.5

2010 2011 2012 2013 2014 2015

PFO SHPI HPI

Per 2

00,0

00 h

ours

Focus on High Potential Risks• Risk identification – serious & fatal

injury potential• Reviewing control strategies &

effectiveness• Reducing high potential incidents

New fall protection tower at Trail Operations

2015 Safety Performance

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2015 Financial Performance

Revenue $ 8.3 billionGross profit(before depreciation & amortization) $ 2.6 billion

Profit (loss)(attributable to shareholders) ($ 2.5 billion)

Adjusted EBITDA* $ 2.0 billion

Adjusted profit* (attributable to shareholders)

$ 188 million$0.33/share

* Non-GAAP financial measure. See ‘Use of Non-GAAP Financial Measures’ in news release for additional information.8

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$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Existing Notes New Notes

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Strong Financial Position

1. As at April 25, 2016. Assumes a 1.30 CAD/USD exchange rate.2. Teck issued US$1.25 billion aggregate principal amount of five-year and eight-year senior unsecured notes on June 7, 2016. Teck also purchased US$1.25

billion aggregate principal amount of notes maturing from 2017 to 2019 previously issued by Teck. 3. Assumes current commodity prices and exchange rates, Teck’s 2016 guidance for production, costs and capital expenditures, existing US$ debt levels and

no unusual transactions.

• Strong liquidity of over C$5.1 billion1

o Cash balance of ~C$1.3 billion1

o Undrawn US$3 billion credit facility1

• Recently extended near-term debt maturities2

• 2016 targets:o Year-end cash balance of >C$500 million3

o US$3 billion credit facility to remain undrawn

Debt Maturity Profile

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2015 Guidance 2015 Results

Steelmaking Coal

Production1 25-26 Mt 25.3 Mt

Site costs C$49-53/t C$45/t

Transportation costs C$37-40/t C$36/t

Combined costs2 C$86-93 /t C$83/t

US$64/t

Copper

Production 340-360 kt 358 kt

Cash unit costs3 US$1.45-1.55 /lb US$1.45/lb

Zinc

Metal in concentrate production4 635-665 kt 658 kt

Refined production 280–290 kt 307 kt

Capital Expenditures5 $2.3B $2.2B

Consistent Delivery Against Guidance

1. Reflects mid-year revision for temporary shutdowns.2. Combined coal costs are site costs, inventory adjustments and transportation costs.3. Net of by-product credits.4. Including co-product zinc production from our copper business unit.5. Including capitalized stripping.

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2015 Sustainability Highlights

Ranked in top 10% of the world’s largest companies on Dow Jones Sustainability Index

Achieved all 2015 goals and set new short-term goals to 2020

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Our Focus in 2016

Productivity: Core business cash flow positive; reduce costs

Financial Strength: Targeting $500M or greater year-end cash balance; fund Fort Hills from internal cash

sSafety: Build on HPI program results

Sustainability: Improve performance; work towards 2020 goals

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Our Approach to SustainabilityMarcia SmithSVP, Sustainability and External Affairs

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• Six focus areaso Community o Biodiversityo Our Peopleo Watero Airo Energy and Climate

Change

• Working towards short-term 2020 goals and long-term 2030 goals

Our Sustainability Strategy

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Our Approach to Materiality

• Long-term materiality review to look at global trends and inform strategy

• Annual materiality assessment process to identify risks and opportunities, engage COIs

Reviewing with internal and external

sources

Quantifying impacts

under G4 Guidelines

Soliciting internal

feedback

Developing materiality

matrix

Receiving feedback from COI

panel

Senior Management Review and

Approval

Our Annual Materiality Process

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Economic Social Environmental• Economic

Performance and Contributions

• Our Workforce

• Business Ethics

• Mine Closure

• Health and Safety of Our Workforce

• Engaging with Indigenous Peoples

• Community Engagement

• Human Rights

• Product Impacts

• Emergency Preparedness

• Tailings and Mine Waste Management

• Water Management

• Air Quality

• Energy and Climate Change

• Biodiversity

• Environmental Management

2015 Material Topics

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2015 Sustainability Risks and Opportunities

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Energy and Climate Change

Context • Energy is our 3rd largest operational cost • Potential for increasing costs due to transition

to low-carbon economy; carbon pricing• Demand for commodities likely to shift • Building an emerging oil sands business

Approach• Diversification of products; • Low-cost production• Innovation to reduce our carbon footprint

through efficiency, low-carbon technology, alternative energy

Performance

Energy & Carbon Intensity:Copper Production

Energy & Carbon Intensity: Steelmaking Coal Production

Energy Consumption & GHG Emissions by Type

41,000 41,500 42,000 42,500 43,000 43,500 44,000 44,500 45,000 45,500 46,000

2,650 2,700 2,750 2,800 2,850 2,900 2,950 3,000 3,050 3,100 3,150

2013 2014 2015

Ener

gy C

onsu

mpt

ion

in T

J

GH

G E

mis

sion

s (k

tof C

O2e

)

GHG Emissions Energy Consumption18

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Case Study Cutting Costs and Emissions with LNG Truck Pilot

6 haul trucks converted to LNG at Fording River

Upgraded maintenance, installed fueling facilities, implemented safety program

~35,000 tonnes of potential CO2 reductions from LNG use

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Water and Tailings Management

Context• Majority (10 of 12) of sites in water abundant

regions; water quality key focus• Two Teck sites in water-stressed areas• Seven mines with active tailings storage

facilities

Approach• Implementing comprehensive water

management plans at all our operations, including water reduction targets at sites located in areas where water is scarce

• Engaging water users in our areas of influence

• Maintaining the highest standard of safety and environmental protection

Summary of Management At Active Tailings Storage Facilities at Teck

PerformanceWater Used, Reused and Recycled in 2015*

Regular staff Inspections

Annual External Inspection

Detailed Third-Party Reviews

Tailings Review Boards

Total water use

Down 27%

New water use

Down 15%

Water recycling

Up 7%

*Compared to 2013 data

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Case Study West Line Creek Active Water Treatment Facility

96% of selenium & 99% of nitrate removed from water

Part of our work to implement the Elk Valley Water Quality Plan

7,500 m3 of water treated per day

Achieving design target for water quality

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Communities and Indigenous Peoples

Context• Many operations located close to local

communities• Most operations, exploration and development

projects located within or adjacent to Indigenous Peoples’ territories

• Growing expectations of community engagement throughout the mining life cycle to address concerns and define mutual benefits

Approach• Protect human rights and engage with

communities on potential impacts• Build strong relationships and create lasting

mutual benefits• Engage with Indigenous Peoples early and

work to achieve their Free, Prior and Informed Consent for our projects

Spotlight on agreement with Indigenous Peoples

Performance

34 active agreements in place with Indigenous Peoples, including newly signed agreements or agreements already in implementation

7 new agreements were reached with Indigenous Peoples in 2015

In 2016, signed impact management and benefits agreement with Ktunaxa Nation Council covering all Elk Valley mines

Community Investment Categories

Community Investment Types

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Performance Summary

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Performance Summary

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Greg WallerVice President, Investor Relations and Strategic AnalysisTeck Resources LimitedT: 604.699.4014E: [email protected]

Questions?

Marcia SmithSenior Vice President, Sustainability and External AffairsTeck Resources LimitedT: 604.699.4616E: [email protected]

www.teck.com/sustainability25

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2015 Sustainability Report Investors’ Conference CallJuly 12, 2016