The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
North of 60 Mining News - January 21, 2025
During 2024, trucks hauled concentrates containing more than 1.2 billion pounds of zinc from the Red Dog Mine to Alaska's northwest coast for shipping.
Teck Resources Ltd.'s Red Dog Mine in Alaska produced a whopping 555,600 metric tons (1.22 billion pounds) of zinc during 2024, accounting for roughly 5% of all the galvanizing metal mined on Earth last year. The phenomenal Northwest Alaska zinc-lead-silver-germanium mine, however, has reached its apex. Over the coming years, Red Dog's output and status as the world's largest zinc-producing mine is expected to fade as crews mop up the last of the ore that has fed the mill for more than three decades.
"Production in each of the next three years is expected to decrease primarily due to declining grades at Red Dog," Teck penned in a Jan. 21 report on 2024 production and guidance for 2025.
The fading of metals production at Red Dog has been expected, but the decline is happening faster than anticipated.
Early last year, Teck forecast that the Northwest Alaska mine would produce 460,000 to 510,000 metric tons (1.04 billion to 1.1 billion lb) of zinc and 80,000 to 90,000 metric tons (176.4 million to 198.4 million lb) of lead during 2025.
However, new guidance released by the mining company today has lowered the expectations to 430,000 to 470,000 metric tons (948 million to 1.04 billion lb) of zinc and 85,000 to 105,000 metric tons (187.4 million to 220.4 million lb) of lead.
Teck attributes the roughly 7% drop in zinc production guidance for 2025 to lower grades as mining reaches its end at the pits surrounding the mill.
"As the Qanaiyaq pit nears the end of life, we have seen an increase in ore tonnes in Qanaiyaq, but at lower average zinc grades compared to what was previously expected," the company wrote.
The diminishing zinc and lead production numbers are expected to continue out to 2028. Here is the current metals production guidance out to 2028:
• 410,000 to 460,000 metric tons (903.9 million to 1.01 billion lb) of zinc and 70,000 to 90,000 metric tons (154.3 million to 198.4 million lb) of lead in 2026.
• 365,000 to 400,000 metric tons (804.7 million to 881.8 million lb) of zinc and 60,000 to 80,000 metric tons (132.3 million to 176.4 million lb) of lead in 2027.
• 290,000 to 320,000 metric tons (639.3 million to 704.5 million lb) of zinc and 50,000 to 65,000 metric tons (121.3 to 143.3 million lb) of lead in 2028.
Teck says this fading zinc production reflects declining grades in the pits currently being mined. These pits host enough reserves to keep the Northwest Alaska mine in operation until 2031.
Aktigiruq and Anarraaq, satellite deposits on state land held by Teck, could elevate the Northwest Alaska operation back to a top global zinc producer in the coming years.
"There is regional geology that suggests there are other deposits as close as 10 miles away that could be as large as the existing deposits that we are operating right now," Michael Gonzales, manager of tailings and environment at Red Dog, said in a 2024 video describing the potential around the mine. "Because it is similar, because it is close by, it is a great opportunity."
Aktigiruq, which lies about nine miles north-northwest of the current Red Dog operation, is one of the largest undeveloped zinc deposits on Earth.
While an industry-compliant resource has yet to be published, Teck has previously reported that Aktigiruq hosts 80 to 150 million metric tons of material averaging 16 to 18% combined zinc and lead.
This would be enough ore to provide the Red Dog mill with high-grade feedstock for 25 to 50 years at current production rates.
Anarraaq, which lies just south of Aktigiruq, hosts 19.4 million metric tons of inferred resource averaging 14.4% zinc and 4.2% lead, according to the most recent calculation published by Teck.
In mid-December, the U.S. Army Corps of Engineers approved permits for the construction of road and other infrastructure needed to advance exploration at Anarraaq and Aktigiruq.
With the issuance of the permit, Teck has begun the construction of 12 miles of roads to these large deposits that could extend the world-class Red Dog zinc-lead-silver-germanium mine deeper into the 21st century.
"We are advancing studies to extend the life of the operation, having commenced construction of an all-season access road to more efficiently drill the nearby Anarraaq and Aktigiruq deposits, which are critical to the extension of the mine life of Red Dog," Teck wrote.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
Reader Comments(0)