Teck CEO says copper demand outpacing economic growth in ‘electricity-intensive’ era
Metals miner Teck Resources expects structural copper demand to outpace broader economic growth over the coming years, as electrification, digital infrastructure and urbanisation drive what it describes as an “electricity-intensive” phase of global expansion.
Speaking at the BMO Capital Markets Global Metals, Mining and Critical Minerals Conference this week, CEO Jonathan Price said copper sits “at the heart of electrification”.
“In the coming years, we expect global growth to shift into an electricity-intensive phase driven by continued investments in the digital economy, energy transition, and rapid urbanisation,” he said, adding that copper consumption was occurring “both earlier and faster than broader economic activity”.
Price pointed to near double-digit compound yearly growth in demand through to the end of the decade, supported by electric vehicle roll-outs, solar and wind deployment and grid expansion. Grid infrastructure, he said, represented a key bottleneck to global electrification, requiring significant investment to upgrade ageing systems and expand capacity.
On the supply side, Price warned that constraints remained substantial, with production from existing mines expected to begin declining from 2027. Even including committed projects, supply is forecast to peak in 2029, with limited growth options beyond that point.
He added that the outlook did not factor in concentrate market disruptions, with unplanned interruptions in 2025 running more than 6% above historic levels.
“There is an emerging disconnect between the lead time to bring on new mine supply versus the underlying demand drivers,” he said, noting that a new data centre could be built in as little as nine months, while a new mine could take more than 20 years to develop.
MERGER PROGRESS
Meanwhile, Price reported that Teck's proposed merger of equals with Anglo American was continuing to advance.
Shareholders voted overwhelmingly in favour of the merger in December, and approval under Canada’s Investment Canada Act was secured. The companies have also received completion and antitrust approvals from Canada, Chile, Australia, Japan, the EU and the US, with two approvals remaining. The previously guided 12- to 18-month regulatory timeframe remains intact.
The combined entity, to be known as Anglo Teck, is expected to rank among the top five global copper producers, with more than 1.2-million tonnes a year of copper production from six world-class assets and more than 70% exposure to copper.
Price said the transaction was expected to unlock $800-million in recurring yearly corporate synergies, with about 80% to be realised by the end of the second year following completion.
In addition, optimisation and adjacency opportunities – including the potential combination of Teck’s Quebrada Blanca asset with Anglo’s Collahuasi operations – could generate an estimated $1.4-billion in yearly underlying earnings before interest, taxes, depreciation and amortisation uplift.
In the interim, Teck is focused on disciplined execution of its standalone business plan. Following a comprehensive operational review completed in October, the company reaffirmed its 2026 to 2028 production guidance for all operated sites.
Since 2022, Teck has increased copper production by about 67%, with copper now accounting for more than 70% of total output.
