Red Dog churns out 1.3B lb zinc in 2018

Teck Resources Ltd. Feb. 12 reported that the Red Dog zinc mine in Northwest Alaska produced 583,200 metric tons (1.29 billion pounds) of zinc during 2018, a roughly 8 percent increase over the 541.9 metric tons (1.19 billion lb) of the galvanizing metal produced in 2017. The operation also produced 98,400 metric tons (217 million lb) of lead last year, which is down about 12 percent from the previous year.

During the fourth quarter, Red Dog produced 160,100 metric tons (353 million lb) of zinc, which is 13 percent higher than the 141,200 metric tons (331.3 million lb) produced during the same period a year ago. Higher mill throughput, grade and recoveries where all contributors to the increased zinc production during the final three months of 2018.

While lead production for the year was down, fourth quarter production for this metal was strong. During the final quarter of 2018, Red Dog produced 26,600 metric tons (58.6 million lb) of lead, a 6 percent increase over 25,000 metric tons (55.1 million lb) produced at the mine during the same period of 2017.

"Red Dog has strong operational performance in the fourth quarter with higher-than-planned throughput, resulting in higher zinc and lead production compared with Q4 2017," Teck Resources President and CEO Don Lindsay said during a Feb. 13 earning call.

Teck said a US$110-million mill upgrade project the company began at Red Dog late in 2017 is progressing as planned.

The mill upgrade, slated to start up early in 2020, is expected to increase average mill throughput by about 15 percent over the remaining mine life at Red Dog.

Based on 57.6 million metric tons of reserves averaging 13.6 percent (13.9 billion pounds) zinc and 3.9 percent (2.5 billion lb) lead, the Red Dog Mine is now expected to continue churning out zinc and lead until 2031.

Teck anticipates Red Dog will produce 535,000 to 555,000 metric tons (roughly 1.18 billion to 1.22 billion lb) of zinc and 85,000 to 90,000 metric tons (roughly 187 million to 198 million lb) of lead during 2018.

During the following three years, 2020 to 2022, the British Columbia-based miner expects the Northwest Alaska operation to produce 500,000 to 520,000 metric tons (1.1 billion to 1.15 million lb) of zinc and 85,000 to 100,000 (187 million to 220 million lb) metric tons of lead annually.

–SHANE LASLEY