Canadian diversified miner Teck Resources has increased the capital cost guidance for its flagship Quebrada Blanca Phase 2 (QB2) copper growth project, in Chile, by at least $500-million, citing current foreign exchange assumptions and cost pressures relating to weather and subsurface conditions.

The capital expenditure (capex) guidance is now between $7.4-billion and $7.75-billion, compared with the prior guidance of $6.9-billion to $7-billion in July 2022, and an earlier guidance of $4.7-billion.

The new Teck construction cost guidance is in line with the $7.5-billion estimate that Japanese partner Sumitomo (33.33% owner) reported in August.

QB2, which is considered one of the world’s biggest undeveloped copper resources, has faced several delays, having initially expected to begin production in 2021.

Teck CEO Jonathan Price said on a conference call this week that the group continued to target first copper from line one late this year. “However, if productivity impacts persist, this will be delayed into January 2023.”

The diversified mining company said it expected copper production to be in the range of 170 000 t/y to 300 000 t/y in 2023 to 2025, down from the previously disclosed range of 245 000 t/y to 300 000 t/y.

Meanwhile, the next phase of development of QB will be the Quebrada Blanca Mill Expansion (QBME). The QBME feasibility study, including all the environmental baseline activities will be completed next year, Price reported.

QBME, which will entail an increase in concentrator throughput of about 50% with the addition of one identical, semi autogenous grinding mill, will be a significant contributor to the company’s near-term copper growth portfolio, with first production targeted for 2026, he said.

Teck is also continuing to progress other copper growth projects. Earlier this year, the company entered into an agreement with PolyMet to form a 50:50 joint venture to advance PolyMet’s NorthMet project and Teck’s Mesaba mineral deposit, in the US. An updated feasibility study and detailed engineering is under way at NorthMet.

At San Nicolas, feasibility work will be completed in the first quarter of 2024 and first production is scheduled for late 2026.

At Zafranal, in Peru, the feasibility study was completed in mid-2019 and Teck is in the final stage of the permitting process.