Teck Resources Ltd. (TSX:T.TCKb, Stock Forum) is set to begin developing a new deposit at its Red Dog operation in Alaska, a move that is expected to extend the life of the world’s second largest zinc mine for another 20 years at least.
The Aqqaluk deposit is vital to the future of the Red Dog mine, which accounts for about 26% of Teck’s overall revenue, because it will replace fast-depleting ore in the operation’s main zone. With pre-stripping scheduled to begin in May, the company hopes to be processing ore from Aqqaluk in 2012.
The decision to proceed follows talks between Teck and the United States Environmental Protection Agency (EPA) over the renewal of Red Dog’s main water discharge permit. The permit is subject to what a Teck spokeswoman called a “procedural challenge’’ by two environmental groups.
EPA has withdrawn five contested limitations in the permit and has stated its intent to conduct an updated permit proceeding once certain procedural matters are addressed.
However, Teck Senior Vice-president Mike Agg described the discussions with the EPA as constructive and said the company is going ahead with development after carefully considering the environment, company employees and local communities.
Having produced 550,000 tonnes of zinc in concentrates last year, Red Dog is one of the largest employers in Alaska with 550 employees on the payroll.