In a bold move to secure its position as a global leader in critical metals, Canadian mining company Teck Resources is turning its focus to a groundbreaking copper mining operation in the Atacama Desert, Chile. Teck’s ambitions come amid an unprecedented surge in demand for copper, driven largely by the transition to low-carbon energy and electric vehicles.

However, the journey has not been without hurdles. Tragedy struck on September 25, 1996, when Frank Pickard, then CEO of Falconbridge—a company that once dominated Canada's mining industry—tragically died from a heart attack while visiting the Collahuasi mine site. His untimely demise highlighted the high-altitude challenges miners face. Collahuasi, which today stands as the world’s third-largest copper mine, eventually fell out of Canadian hands after a series of mergers and acquisitions led to its current ownership by Glencore and Anglo American.

Despite losing ground to international giants, Canada has a new contender in the copper arena with Teck Resources. Just eleven kilometers from Collahuasi lies Teck's flagship Quebrada Blanca (QB) project, known as QB2. This ambitious operation is not only a revival for Teck, which once heavily relied on coal but also represents a significant player in the global copper market at a time when major companies are facing supply constraints.

Jonathan Price, Teck's CEO since 2020, has articulated a vision to position the company among the top ten copper producers globally. With QB2 ramping up production, he believes this is just the beginning of a remarkable transformation for the company, which has shifted its focus toward more critical-metals mining.

Teck's journey has not been without its challenges. Two years ago, the company nearly fell victim to a hostile takeover by Glencore. In a strategic move, Teck divested 77% of its metallurgical coal operations to Galencore for $6.9 billion. This decision allowed Teck to focus solely on critical metals, with copper now accounting for 70% of its revenue as the company moves forward with QB2.

Despite the bright future envisioned for QB, pressures loom from Collahuasi's owners, who eye potential mergers that might ultimately reduce Teck's stake and influence in the region. Such a merger could result in significant synergies, potentially boosting operating profits by $1.5 to $2 billion annually. Price and his team remain firm in their strategy to maintain independence, even as market forces push for collaboration.

The Atacama Desert, home to what is considered one of the richest copper belts globally, poses unique challenges and opportunities for miners. Despite its harsh climate, where conditions can be likened to alien terrains, the region has been a mining heartland for centuries. The prospect of copper extraction is tantalizing, especially given Chile's status as the world's leading supplier, responsible for approximately one quarter of global copper production.

Teck’s QB2 project is particularly noteworthy for its enormous scale, which involves significant investments in infrastructure that could ultimately yield a massive increase in output. The mine has been gradually overcoming initial setbacks related to budget overruns and delays. With initial production now beginning, the mine has the potential to produce 230,000 to 270,000 tonnes of copper annually by 2025.

To put it in perspective, if Teck's projects—while expanding QB2 capabilities and developing potential new mines in British Columbia, Peru, and Mexico—succeed, the company could see its copper production soar to 800,000 tonnes by the end of the decade. This would propel Teck into the ranks of the world's sixth or seventh largest copper producers, positioning it well to capitalize on rising demand.

The continually evolving landscape of copper mining means competition will grow fierce. Analysts predict consolidation activities may engulf the sector, making it critical for Teck to fend off potential predators. The fate of Teck—and indeed Canada’s place in the copper market—will depend on how successfully it navigates these strategic waters while pushing forward with its growth aspirations in the Atacama Desert.

As Teck seeks to solidify its place in the increasingly competitive global mining industry, the high-altitude ambitions of the QB2 project may very well determine its corporate destiny in the age of electrification and critical metal dependency.