Technology and Innovation as Cost Reduction Drivers at Teck

The purpose of this paper is to analyze the cost control and productivity problems facing the mining industry and Teck Resources in particular, and examine whether technologies, such as automation, and innovations such as integrated operations can contribute to their resolution. The paper identifies the industry that Teck operates in, examines the commodities Teck produces, and identifies some of the problems Teck and the industry faces using a strategic analysis process. For Teck to shift the paradigm of productivity from incremental evolution to a more productive future, major innovation is a better strategy. The Rock Factory concept, where mining becomes a more continuous operation in order to improve productivity, is used as an example of transformational change. To drive transformation across the organization an innovation strategy and appropriate organizational structure with senior management support is required. Change Management strategies are examined that can be used to successfully implement these strategies.