(Reuters) -Teck Resources late on Tuesday said it would defer approving major growth projects until its Quebrada Blanca Phase 2 (QB2) copper mine in Chile achieves steady operations and target output, as part of a companywide operations review.
The Canadian copper miner said that it began the review process in August to improve performance across the company, which it expects to conclude by October, with an updated forecast by its third-quarter results.
“We expect a negative reaction to Teck’s operations review and management changes, as while these changes could ultimately lead to better operational performance, they create uncertainty until the October guidance update”, said RBC Capital Market analysts in a note.
The company also appointed senior vice presidents of operations for Latin America and North America, who will report to CEO Jonathan Price.
The QB2 mine, located in Chile’s northern Tarapaca Region, is 60% indirectly owned by Teck.
(Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore)
