ASSESSING BUSINESS STRATEGY OPTIONS FOR ACTIVE WATER TREAMENT FACILITY PROJECTS

This document reviews a spectrum of potential of alternative service delivery project models that might be advantageous for Teck’s Active Water Treatment Facilities by achieving capital and operating cost reductions, and allowing Teck to focus on core mining activities. Screening criteria are provided to assess if these models should be considered as part of a framework to guide decision-making. In principle, the attributes of these water treatment facilities support alternative service delivery, but would require verification of potential economic benefits. It would also need a shift from Teck’s traditional project delivery culture that likely cannot be achieved in a timely manner for the facility at Fording River Operations, which is now in the engineering study phase. However, a comparative analysis of different models for this facility would define whether further consideration of alternative service delivery is warranted for subsequent facilities.