Bechtel launches EPCM works on Teck's Quebrada Blanca 2 project

Thursday, January 17, 2019

Press release by Bechtel published in English using an automated translation system.

Santiago, Chile - January 17, 2019 - Bechtel, a leading global engineering, procurement and construction company, received approval from its client Teck to proceed with the expansion of the Quebrada Blanca copper mine in Chile. This expansion has a copper concentrator with a capacity of 143,000 tons per day, a high capacity desalination plant and a water supply pipe with an extension of 165 kilometers.

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The Quebrada Blanca Phase 2 Project (QB2) is located in the Cordillera de los Andes in northern Chile, at 4,300 meters above sea level and approximately 145 kilometers from the Pacific Ocean. Bechtel will be responsible for engineering, procurement and construction management (EPCM for its acronym in English). The first production is scheduled for the second half of 2021 and QB2 is expected to produce 316,000 tons of copper per year during the first five full years of mine life.

"We are very proud to work with Teck for the development of the Quebrada Blanca Phase 2 Project. Working together with Teck, we have developed an efficient capital design and, in the field, we will apply innovative productivity methodologies to deliver the most economical construction costs in Chile The project represents a great opportunity for Bechtel and Teck to deliver the best results in the industry when building the largest copper project in Latin America, "said Paige Wilson, president of Bechtel's global mining and metals business unit.

Bechtel's global experience includes the delivery of more than 40 large copper projects, as well as other major projects in the mining and metals industry, and a 60 percent increase in copper production capacity in Latin America during the last three decades

The QB2 Project is owned by Compañía Minera Teck Quebrada Blanca SA (QBSA) and after the closing of the transaction announced last December, it will be the indirect property of Teck (60 percent), Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation ( 30 percent), and Enami, a state-owned company in Chile (10 percent).

Bechtel and Teck have worked together since 2011, including the development of studies for the expansion of the Quebrada Blanca mine, which obtained approval for its environmental and social impact assessment in August 2018.

About Bechtel: Bechtel is one of the most respected global engineering, construction and project management companies. Together with our clients, we deliver emblematic projects that promote long-term economic growth and progress. Since 1898, we have completed more than 25,000 extraordinary projects in 160 countries on seven continents.

We operate through four global business units: Infrastructure; Nuclear Energy, Safety and Environment; Oil, Gas and Chemicals; and Mining and Metals. Our company and our culture are forged over more than one hundred years of leadership and strong attachment to our values, in whose center are security, quality, ethics and integrity. These values represent what we believe, what we expect, what we deliver and what we live.