Teck CEO: Asia Sales Strategy to Mitigate US Tariff Risks

Teck Resources Limited, a Canadian resource company, has been making waves in the mining industry with its strategic shift towards Asia. The company's CEO, Jonathan Price, recently revealed that Teck could sell more of its copper and zinc concentrates to Asia to avoid potential tariffs imposed by the US under President Donald Trump's policies. This move aligns with Teck's long-term growth strategy and positions the company to capitalize on the region's growing demand for these metals.

Teck's copper and zinc concentrate sales are primarily directed to Asia and Europe, with only a small portion sold into the US market. However, the company also sells refined zinc, lead, and specialty metals, including germanium, indium, and sulphur products, into the US. In the event that tariffs are imposed, Teck expects trade flows to adjust, and it will likely find alternatives for these products. Price reassured investors that these specialty metals comprise less than 15% of Teck's revenue, and the company remains resilient due to its diversified product portfolio and strong commercial strategy.



Teck's focus on Asia is driven by the region's significant economic growth and urbanization trends. The company's copper and zinc products are essential for infrastructure development and the production of electronic devices, which are in high demand in Asia. By targeting this market, Teck can tap into a vast and growing customer base, further enhancing its long-term growth and profitability.

Price acknowledged the fluid and rapidly evolving trade situation between the US and Canada but expressed confidence in Teck's ability to adapt to changing market conditions. The company has a strong commercial strategy and logistics network that allows it to quickly pivot as needed. Teck's adaptability will be crucial in navigating the potential trade disruptions and ensuring the company's long-term success.



Teck's strategic shift towards Asia is a testament to the company's commitment to balancing growth investments with shareholder returns while maintaining a strong balance sheet. The company's near-term copper growth projects, such as the Quebrada Blanca Phase 2 (QB) project in Chile, are expected to increase copper production and contribute to Teck's long-term growth strategy. Teck's focus on Asia, combined with its adaptability and strong commercial strategy, will contribute to the company's long-term growth and profitability.

In conclusion, Teck's strategic shift towards Asia enables the company to capitalize on the region's growing demand for copper and zinc, diversify its customer base, and mitigate the risks associated with potential US trade tariffs. This focus on Asia, combined with Teck's adaptability and strong commercial strategy, will contribute to the company's long-term growth and profitability.