Teck Resources Limited (TECK): Business Model Canvas

Key Partnerships

Teck Resources Limited (TECK) has established key partnerships in various aspects of its business operations to ensure efficiency, sustainability, and success. These partnerships play a crucial role in the company's ability to leverage expertise, resources, and relationships to drive value creation.

Collaborations with mining equipment suppliers: TECK has forged strategic partnerships with leading mining equipment suppliers to ensure access to cutting-edge technologies and equipment that enhance operational efficiency and safety. By collaborating with these suppliers, TECK can stay at the forefront of technological advancements in the mining industry.

Joint ventures in mining operations: TECK has entered into joint ventures with other mining companies to share resources, risks, and expertise in developing and operating mines. These partnerships enable TECK to access new mineral deposits, diversify its portfolio, and leverage the strengths of its partners.

Partnerships with logistics companies: TECK works closely with logistics companies to optimize transportation, storage, and distribution of its products. By partnering with logistics experts, TECK can streamline its supply chain, reduce costs, and enhance overall operational efficiency.

Agreements with indigenous communities: TECK recognizes the importance of engaging and collaborating with indigenous communities near its mining operations. Through agreements and partnerships with these communities, TECK can ensure responsible and sustainable resource development, respect cultural heritage, and foster mutually beneficial relationships.

Key Activities

Teck Resources Limited is a diversified resource company engaging in a range of key activities to support its business model. These activities include:

• Mineral extraction and processing: One of the primary activities of Teck Resources is the extraction and processing of minerals such as copper, zinc, and coal. This involves the development and operation of mining operations, processing plants, and associated infrastructure to extract and refine these minerals for sale to customers.
• Resource exploration and development: Teck Resources invests significant resources into the exploration and development of new mineral deposits to expand its resource base and support future production. This includes geological surveys, drilling programs, and feasibility studies to assess the potential of new projects.
• Environmental management and sustainability practices: As a responsible resource company, Teck Resources places a strong emphasis on environmental management and sustainability practices. This includes implementing measures to minimize the environmental impact of its operations, such as water and air quality monitoring, waste management, and reclamation programs.
• Marketing and sales of mineral products: Teck Resources engages in marketing and sales activities to sell its mineral products to customers around the world. This involves maintaining relationships with key customers, negotiating sales contracts, and managing logistics to ensure timely delivery of products to market.

Overall, these key activities are essential to the successful operation of Teck Resources' business model, enabling the company to efficiently extract, process, and sell mineral products while maintaining a strong focus on environmental stewardship and sustainability.

Key Resources

Teck Resources Limited (TECK) possesses a range of key resources that are fundamental to its operations and success in the mining industry. These resources include:

Mineral reserves:

• TECK owns and operates large mineral reserves across various regions, including copper, zinc, and coal, which serve as the foundation for its mining activities.

Mining equipment and technology:

• The company has invested in state-of-the-art mining equipment and technology to efficiently extract minerals from the ground and maximize production output.

Skilled workforce:

• TECK has a skilled and experienced workforce that includes miners, engineers, geologists, and other professionals who are essential to carrying out mining operations effectively and safely.

Research and development teams:

• TECK has dedicated research and development teams that focus on developing innovative solutions for mining processes, environmental sustainability, and resource efficiency.

Through these key resources, TECK is able to maintain a competitive edge in the mining industry and continue to drive sustainable growth and value creation for its stakeholders.

Value Propositions

Diverse range of minerals: Teck Resources Limited offers a diverse range of minerals, including steelmaking coal, copper, and zinc. This allows the company to provide a wide array of products to meet the needs of various industries.

Commitment to sustainable mining practices: Teck is committed to sustainable mining practices, ensuring that its operations have minimal impact on the environment and surrounding communities. By implementing responsible mining practices, the company not only reduces its environmental footprint but also enhances its reputation as a socially responsible organization.

Reliable supply of high-quality minerals: Teck prides itself on providing a reliable supply of high-quality minerals to its customers. With a focus on quality control and operational excellence, the company ensures that its products meet the highest industry standards, leading to customer satisfaction and loyalty.

Global operational presence: With operations spanning across the globe, Teck has a strong global operational presence. This international reach allows the company to tap into various markets, diversify its revenue streams, and mitigate risks associated with localized operations.

• Steelmaking coal
• Copper
• Zinc

Customer Relationships

Teck Resources Limited (TECK) places a strong emphasis on cultivating and maintaining relationships with its customers through various strategies:

- Establishing long-term contracts with industrial users: TECK focuses on fostering long-term partnerships with its customers by entering into contracts that provide stability and predictability for both parties. These contracts enable TECK to secure a steady revenue stream and ensure a reliable market for its products.

- Providing technical support for products: TECK offers technical support to its customers to assist them in optimizing the use of its products. This includes providing guidance on product specifications, usage, and maintenance to help customers achieve optimal performance and efficiency.

- Engaging with communities: TECK understands the importance of engaging with the communities in which it operates. The company actively participates in community development projects, supports local initiatives, and collaborates with stakeholders to address social and environmental issues. By building strong relationships with local communities, TECK aims to create sustainable value for all stakeholders.

- Demonstrating transparency and corporate responsibility: TECK is committed to transparency and accountability in its operations. The company regularly reports on its environmental, social, and governance (ESG) performance, providing stakeholders with visibility into its sustainability efforts. By prioritizing corporate responsibility, TECK aims to build trust with its customers and demonstrate its commitment to ethical business practices.

Channels

Direct sales teams: Teck Resources Limited utilizes a team of sales professionals who are responsible for building relationships with customers and driving sales of the company's products. These sales teams are trained to understand the specific needs of each customer and offer tailored solutions to meet their requirements.

Logistic networks for product distribution: Teck Resources Limited has established a robust logistic network to ensure efficient distribution of its products to customers across the globe. This network includes partnerships with transportation companies, warehouses, and distribution centers to streamline the delivery process and reduce lead times.

Company-owned export terminals: In order to facilitate the export of its products, Teck Resources Limited owns and operates export terminals in strategic locations. These terminals serve as key hubs for shipping products to international markets, allowing the company to reach customers in distant regions.

Online marketing and sales platforms: To reach a wider audience and enhance customer engagement, Teck Resources Limited leverages online marketing and sales platforms. These platforms allow customers to access product information, place orders, and communicate with sales representatives in a convenient and efficient manner.

• Direct sales teams
• Logistic networks for product distribution
• Company-owned export terminals
• Online marketing and sales platforms

Customer Segments

Teck Resources Limited serves a diverse range of customers across multiple industries. Some key customer segments include:

• Steel Producers: Teck Resources provides steel producers with the raw materials needed for steel production, such as coal and iron ore. These customers rely on Teck Resources to supply high-quality materials efficiently and consistently to meet their production demands.
• Electronics Manufacturers: With the increasing demand for electronics globally, electronic manufacturers require a reliable source of materials such as copper, zinc, and lead. Teck Resources plays a crucial role in providing these essential materials to electronics manufacturers, ensuring a steady supply chain for their production needs.
• Construction and Infrastructure Companies: Construction and infrastructure companies rely on Teck Resources for materials like steelmaking coal, zinc, and copper for various construction projects. These customers depend on Teck Resources to supply materials that meet regulatory requirements and industry standards for construction and infrastructure projects.
• Chemical Industry: The chemical industry requires a range of raw materials for manufacturing processes, such as zinc and lead. Teck Resources provides these materials to chemical companies, enabling them to produce a wide range of products efficiently and sustainably.

Cost Structure

Teck Resources Limited (TECK) incurs various costs in its operations to maintain and grow its business. These costs include:

• Operational costs of mining and processing: TECK operates multiple mines across Canada, the United States, and South America. The company incurs costs related to extracting ore, processing raw materials, and transporting finished products to customers.
• Expenditures on environmental sustainability: TECK is committed to environmental sustainability and invests in initiatives to reduce its carbon footprint, conserve water resources, and minimize waste. These expenditures include implementing clean technologies, conducting environmental impact assessments, and adhering to regulatory requirements.
• Research and development costs: TECK invests in research and development to improve its operations, develop new products, and enhance its competitiveness in the market. These costs include funding innovative projects, collaborating with industry partners, and testing new technologies.
• Capital investments in machinery and equipment: TECK regularly invests in machinery, equipment, and infrastructure to support its mining and processing operations. The company purchases state-of-the-art equipment, upgrades existing facilities, and expands its production capacity to meet growing demand.

By carefully managing its cost structure, TECK aims to optimize its financial performance, achieve operational efficiency, and sustain its long-term growth in the mining industry.

Revenue Streams

Teck Resources Limited (TECK) generates revenue through various streams, which are essential to sustaining its operations and growth. The following are the key revenue streams for TECK:

• Sale of extracted and processed minerals: TECK primarily derives revenue from the sale of mined minerals, such as copper, zinc, and coal. These minerals are extracted from TECK's mining operations and processed into high-quality products that are sold to customers worldwide.
• Long-term contracts with key industry players: TECK secures revenue through long-term contracts with key industry players, such as smelters, refineries, and manufacturers. These contracts provide TECK with a stable source of income and help mitigate the impact of market fluctuations.
• Licensing of technology and patents: TECK also generates revenue through the licensing of its innovative technologies and patents. These technologies are developed in-house and are valued for their efficiency, sustainability, and cost-effectiveness. By licensing these technologies to other companies, TECK can generate additional streams of revenue.
• Environmental credits and certifications: TECK earns revenue by obtaining environmental credits and certifications for its sustainable practices. These credits and certifications can be sold to other companies seeking to offset their carbon footprint or meet environmental regulations. By monetizing its commitment to sustainability, TECK can create a new revenue stream while also promoting responsible mining practices.