Teck Resources, the miner Anglo American PLC agreed to buy, said third-quarter profits rose almost a fifth as rising metal prices offset disruptions at its main copper mine in Chile.
The Canadian miner will be absorbed by Anglo in a deal that will create one of the world’s largest mining companies and will be a key supplier of copper at a time of growing demand. However, Teck has faced challenges in accelerating production from its Quebrada Blanca mine in the Chilean Andes.
Teck’s adjusted core earnings rose to $836 million, up from $704 million a year earlier, driven by rising copper and zinc prices and higher byproduct revenues, the company said in a statement. Total revenues grew 18%.
The company left its future production projection for Quebrada Blanca unchanged following the latest reduction earlier this month. Teck is restructuring the tailings plant, a project that affects current production to allow for higher volumes in the long term.
Copper production at the mine fell almost 25% in the third quarter from a year earlier to 39,600 tons, and volumes in September were just 5,600 tonnes, affected by 20 days of downtime, Teck said.
