Teck Reports First Quarter Results for 2010

Date : 04/20/2010 @ 10:31PM
Source : Marketwired Canada

Teck Reports First Quarter Results for 2010

All dollar amounts expressed in this news release are in Canadian dollars unless
otherwise noted.


Teck Resources Limited (TSX: TCK.A and TCK.B, NYSE: TCK) announced record
quarterly earnings of $908 million, or $1.54 per share, for the first quarter of
2010. Our operating profit before depreciation was $844 million and EBITDA was
$1.5 billion in the first quarter.


Don Lindsay, President and CEO said, "The results of the quarter reflect two
important themes. First, our ongoing operations continue to produce strong
results, and second, completing the previously announced asset sales has allowed
us to achieve our balance sheet targets and to return to investment grade credit
metrics earlier than planned. Our operating results reflect strong copper
prices, but do not yet reflect the substantial increases in steelmaking coal
prices that have been negotiated. The remainder of the year is also expected to
see the benefit of increased copper production from the Andacollo concentrate
project, which is the first in our pipeline of copper expansion projects."


Highlights and Significant Items

- On April 19, we gave notice to our term lenders to repay the remainder of our
term loan on April 22, 2010. At that time we will have retired all of the
original US$9.8 billion Fording acquisition debt.


- Including the payment noted above, we will have made debt repayments of $2.4
billion on a year-to-date basis. In the 18 months since the Fording acquisition
we will have reduced our total debt by $8.0 billion, from $13.4 billion to $5.4
billion.


- Since April 1, 2010 each of Standard & Poor's, Dominion Bond Rating Service
and Fitch Ratings have rated Teck "investment grade."


- EBITDA was $1.5 billion in the first quarter on record first quarter revenues
of $1.9 billion.


- We completed the sale of a number of our non-core assets in the quarter,
including the sale of a one-third interest in the Waneta Dam, an interest in
future gold production from Carmen de Andacollo and certain Turkish gold
properties for total proceeds of $1.1 billion.


- At the Carmen de Andacollo concentrator project, first ore was delivered to
the mill on January 19, 2010. The process water supply issues have been resolved
and the project was commissioned in the first quarter. Design capacity is
expected to be reached by the third quarter. The new plant is expected to
produce approximately 80,000 tonnes of copper and 55,000 ounces of gold in
concentrate annually over the first 10 years of the project. The first shipment
of concentrate is scheduled for April 29.


- We have agreed on coal prices with the majority of our customers for the
quarter that commenced April 1, 2010. Early pricing settlements, covering most
of our tonnage for that quarter, were reached at the US$200 per tonne level for
our highest quality coal, and our recent settlements have reached as high as
US$235 per tonne. We are currently taking all reasonable steps to maximize our
production levels in light of the tight market for steelmaking coal.


- Coal transportation costs have decreased in the first quarter compared to the
same period in 2009 primarily because of lower rail rates for the westbound
transportation of coal from our five mines in British Columbia. Those savings
will continue based on the one year contract that has been agreed for the year
commencing April 1, 2010. Transportation costs are expected to decline further
beyond March 31, 2011 when port charges will decline due to the elimination of
the remaining link between the price of our coal and the port charges paid to
Westshore Terminals.


- Red Dog received a new water discharge permit and a wetlands permit to allow
the mine to extend mining into the new Aqqaluk ore body. Discussions continue
with the EPA to address concerns arising from the withdrawal of key conditions
in the water permit as a result of an appeal.


This management's discussion and analysis is dated as at April 20, 2010 and
should be read in conjunction with the unaudited consolidated financial
statements of Teck Resources Limited (Teck) and the notes thereto for the three
months ended March 31, 2010 and with the audited consolidated financial
statements of Teck and the notes thereto for the year ended December 31, 2009.
In this news release, unless the context otherwise dictates, a reference to "the
company" or "us," "we" or "our" refers to Teck and its subsidiaries. Additional
information, including our annual information form and management's discussion
and analysis for the year ended December 31, 2009, is available on SEDAR at
www.sedar.com.


This document contains forward-looking statements. Please refer to the
cautionary language under the heading "CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION" below.


Earnings, Adjusted Earnings and Comparative Earnings(i)

Earnings attributable to shareholders of the company were $908 million, or $1.54
per share, in the first quarter compared with $241 million or $0.50 per share in
the same period last year. Earnings in the first quarter included an after-tax
gain of $587 million ($656 million pre-tax) from the sale of a one-third
interest in the Waneta Dam and a $48 million after-tax gain on the sale of our
Turkish gold projects. Pricing adjustments in the first quarter were minimal
compared with $43 million of positive pricing adjustments last year. Comparative
net earnings of $205 million in the first quarter were similar to $214 million
in 2009.




                                                         Three months ended
                                                              March 31
($ in millions)                                           2010         2009
---------------------------------------------------------------------------
Earnings attributable to shareholders as reported        $ 908        $ 241
Add (deduct):
 Asset sale gains                                         (639)        (168)
 Foreign exchange (gains) losses on net debt               (50)         203
 Derivative (gains) losses                                 (32)          24
 Financing items                                            23            -
 Tax items                                                   -          (30)
 (Earnings) loss from discontinued operations                -          (13)
                                                         ------------------
Adjusted net earnings                                      210          257
Pricing adjustments (note 1)                                (5)         (43)
                                                         ------------------
Comparative net earnings                                 $ 205        $ 214
                                                         ------------------

(1) See FINANCIAL INSTRUMENTS AND DERIVATIVES section for further
    information.



Comparative Earnings Factors

Our comparative net earnings also included unusually large administrative costs
primarily due to our stock-based compensation expense, which is tied to our
share price which rose significantly in the period. These items reduced earnings
by $25 million on an after-tax basis. In addition, lower operating costs of $55
per tonne were not yet reflected in the cost per tonne of coal sold due to the
sale of older, higher cost coal as the mix of coal sold included an unusually
large proportion of coal from our higher cost mines. Also, as a result of the
timing of shipments, coal production was higher than coal sales. We expect this
to reverse in the second quarter. Together these items reduced net earnings by a
further $23 million.


(i) Our financial results are prepared in accordance with Canadian GAAP (GAAP).
This news release refers to adjusted net earnings, comparative net earnings,
EBITDA, operating profit and operating profit before depreciation and pricing
adjustments, which are not measures recognized under GAAP in Canada or the
United States and do not have a standardized meaning prescribed by GAAP. For
adjusted net earnings and comparative net earnings, we adjust net earnings as
reported to remove the effect of certain kinds of transactions in these
measures. EBITDA is net income before interest and financing expenses, income
taxes, depreciation and amortization. Operating profit is revenues less
operating expenses and depreciation and amortization. Operating profit before
depreciation and pricing adjustments is operating profit with depreciation,
amortization and pricing adjustments added or deducted as appropriate. Pricing
adjustments are described under the heading "Average Commodity Prices and
Exchange Rates" below. These measures may differ from those used by, and may not
be comparable to such measures as reported by, other issuers. We disclose these
measures, which have been derived from our financial statements and applied on a
consistent basis, because we believe they are of assistance in understanding the
results of our operations and financial position and are meant to provide
further information about our financial results to investors.


Business Unit Results

Our first quarter business unit results are presented in the table below.



Three Months ended March 31
                                                 Operating
                                             profit before
                                              depreciation
                                               and pricing        Operating
($ in millions)                  Revenues      adjustments           profit
---------------------------------------------------------------------------
                             2010    2009       2010  2009       2010  2009
---------------------------------------------------------------------------
Copper                    $   620  $  447      $ 367 $ 168      $ 322 $ 158
Coal                          790     874        313   519        173   429
Zinc                          490     348        155    60        110    40
---------------------------------------------------------------------------
Total                     $ 1,900 $ 1,669      $ 835 $ 747      $ 605 $ 627
---------------------------------------------------------------------------



Operating profit from our copper business unit, before depreciation and pricing
adjustments, increased significantly to $367 million in the first quarter
compared with $168 million, as copper prices were substantially higher than last
year. Copper prices averaged US$3.27 per pound in the first quarter of 2010
compared with US$1.56 per pound in the same period a year ago. Partly offsetting
the higher prices were lower sales volumes, which were 15% lower compared with a
year ago due to timing of shipments and slightly lower production levels. After
depreciation and pricing adjustments, operating profit from our copper business
unit was $322 million in the first quarter compared with $158 million in 2009.
Copper prices rose in the first quarter of 2010 resulting in positive pricing
adjustments of $27 million compared with $63 million of positive adjustments in
the first quarter of 2009.


Operating profit from our coal business unit, before depreciation and pricing
adjustments, was $313 million in the first quarter compared with $519 million
last year. The reduction in operating profit was primarily due to significantly
lower realized coal prices, which averaged C$150 (US$140) per tonne in the
quarter compared with C$237 (US$204) per tonne in the same period a year ago.
The lower realized coal price reflects the lower contracted US dollar price
settlements for the 2009 coal year that commenced April 1, 2009 and the effect
of a stronger Canadian dollar. Sales were 5.3 million tonnes in the first
quarter, which reflected strong demand from China for seaborne coking coal and
increased deliveries to our traditional contract customers. This compares with
sales of 3.7 million tonnes in the first quarter of 2009. Lower operating costs
of $55 per tonne were not yet reflected in the cost per tonne of coal sold due
to the sale of older, higher cost coal and the mix of coal sold from each mine.


Operating profit from our zinc business unit, before depreciation and pricing
adjustments, was $155 million in the first quarter compared with $60 million a
year ago. The higher operating profit was due to significantly higher zinc and
lead prices, which doubled from a year ago, and substantially higher zinc
concentrate sales from our Red Dog mine due to timing of shipments. In addition,
Trail operations operated at full production levels in the first quarter and
contributed higher operating profits compared with 2009, when production
curtailments were in effect. After depreciation and pricing adjustments,
operating profit from our zinc business unit was $110 million compared with $40
million last year.


Revenues

Revenues from operations were $1.9 billion in the first quarter compared with
$1.7 billion a year ago. Revenues from our copper and zinc business units
increased by a total of $315 million, primarily due to significantly higher
metal prices. The higher revenues were partly offset by the effect of the
stronger Canadian dollar. Coal revenues declined by $84 million compared with
the first quarter of 2009 due to significantly lower realized coal prices
partially offset by higher coal sales volumes.


Average Prices and Exchange Rates(i)




                                                   Three months ended
                                                        March 31
                                                  2010  2009  % Change
----------------------------------------------------------------------
Copper (LME Cash - US$/pound)                     3.29  1.56      +111%
Coal (realized - US$/tonne)                        140   204       -31%
Zinc (LME Cash - US$/pound)                       1.04  0.53       +96%
Silver (LME PM fix - US$/ounce)                     17    13       +31%
Molybdenum (published price - US$/pound)            16     9       +78%
Lead (LME Cash - US$/pound)                       1.01  0.53       +91%
Cdn/U.S. exchange rate (Bank of Canada)           1.04  1.24       -16%

(i) Except for coal prices, the average commodity prices disclosed above
    are based on published benchmark prices and are provided for
    information only. Our actual revenues are determined using commodity
    prices and other terms and conditions specified in our various sales
    contracts with our customers. The molybdenum price is the price
    published in Platts Metals Week.



Sales of metals in concentrate are recognized in revenue on a provisional
pricing basis when title transfers and the rights and obligations of ownership
pass to the customer, which usually occurs upon shipment. However, final pricing
is typically not determined until a subsequent date, often in the following
quarter. Accordingly, revenue in a quarter is based on current prices for sales
settled in the quarter and ongoing pricing adjustments from sales that are still
subject to final pricing. These pricing adjustments result in additional
revenues in a rising price environment and reductions to revenue in a declining
price environment. The extent of the pricing adjustments also takes into account
the actual price participation terms as provided in certain concentrate sales
agreements. In the first quarter of 2010, we had positive pricing adjustments of
$9 million ($5 million after non-controlling interests and taxes) compared with
positive adjustments of $70 million ($43 million after non-controlling interests
and taxes) in the first quarter last year. The amount consists of $18 million
($12 million after-tax) of negative pricing adjustments on sales from the
previous quarter and positive adjustments of $27 million ($17 million after-tax)
on sales that were initially recorded at the average price for the month of
shipment and subsequently revalued at quarter end forward curve prices.


The table below outlines our outstanding receivable positions, which were
provisionally valued at December 31, 2009, the number of pounds included in the
December 31 receivables and settled in the first quarter, and our receivable
positions provisionally valued at March 31, 2010.




                         Outstanding at      Settled during   Outstanding at
                      December 31, 2009   the first quarter   March 31, 2010
                      -----------------   -----------------   --------------
(pounds in millions)  Pounds     US$/lb   Pounds     US$/lb   Pounds  US$/lb
----------------------------------------------------------------------------
Copper                   107       3.34       96       3.29       94    3.55
Zinc                     221       1.17      221       1.07      164    1.08
Lead                      31       1.09       31       0.99        -       -
----------------------------------------------------------------------------



Cash Flow from Operations

Cash flow from operations, before working capital changes, was $412 million in
the first quarter compared with $593 million a year ago. The reduction in cash
flow from a year ago was due to lower coal revenues, partially offset by higher
contributions from our copper and zinc operations as a result of higher base
metal prices. Changes in non-cash working capital provided a source of cash of
$68 million in the first quarter compared with $535 million in 2009. In the
first quarter of 2009, we received tax refunds of $801 million. This was
partially offset by refunds to customers based on negative price adjustments
from the previous quarter and the settlement of currency hedges.


BUSINESS UNIT RESULTS

The table below shows our share of production and sales of our major commodities.



                                 Units
                                (000's)     Production             Sales
----------------------------------------------------------------------------
                                           First Quarter       First Quarter
                                           -------------       -------------
                                             2010   2009        2010    2009
--------------------------------------------------------       -------------

Principal products

 Copper (note 1)
  Contained in concentrate      tonnes        47      48          43      57
  Cathode                       tonnes        25      27          28      27
                                           ---------------------------------
                                              72      75          71      84
                                           ---------------------------------

 Coal                           tonnes     5,672   3,966       5,253   3,687

 Zinc
  Contained in concentrate      tonnes       163     167         161     130
  Refined                       tonnes        68      58          66      57

Other products
 Lead
  Contained in concentrate      tonnes        35      33           -       1
  Refined                       tonnes        22      19          18      17

 Molybdenum
  Contained in concentrate      pounds     2,113   1,911       1,875   1,867
----------------------------------------------------------------------------

(1) We include 100% of production and sales from our Highland Valley Copper,
    Quebrada Blanca and Andacollo mines in our production and sales volumes,
    even though we own 97.5%, 76.5% and 90%, respectively, of these
    operations, because we fully consolidate their results in our financial
    statements. We include 22.5% of production and sales from Antamina,
    representing our proportionate equity interest in Antamina.



REVENUES AND OPERATING PROFIT

QUARTER ENDED MARCH 31

Our revenue, operating profit before depreciation and pricing adjustments and
operating profit by business unit are summarized in the table below:




                                                 Operating
                                              profit (loss)
                                                    before
                                              depreciation,
                                              amortization        Operating
                                               and pricing     profit (loss)
($ in millions)                  Revenues      adjustments          (note 1)
---------------------------------------------------------------------------
                              2010   2009        2010 2009       2010  2009
---------------------------------------------------------------------------
Copper
 Highland Valley Copper     $  209 $  186       $ 118 $ 51      $ 115 $  72
 Antamina                      153    126          96   63         96    77
 Quebrada Blanca               188     94         123   41         92     7
 Carmen de Andacollo            26     24          15   12          8     1
 Duck Pond                      44     17          15    1         11     1
---------------------------------------------------------------------------
                               620    447         367  168        322   158
Coal (note 2)                  790    874         313  519        173   429
Zinc
 Trail                         377    292          52   31         39    18
 Red Dog                       159     91          94   29         63    21
 Other                           6     14           3    1          2     2
 Inter-segment sales           (52)   (49)          6   (1)         6    (1)
---------------------------------------------------------------------------
                               490    348         155   60        110    40
---------------------------------------------------------------------------
TOTAL                       $1,900 $1,669       $ 835 $747      $ 605 $ 627
---------------------------------------------------------------------------

(1) After depreciation, amortization and pricing adjustments.
(2) Our coal business unit represents our interest in six operating mines.
    We wholly own Fording River, Coal Mountain, Line Creek and Cardinal
    River mines, and have a 95% partnership interest in the Elkview mine
    and an 80% joint venture interest in the Greenhills mine.



COPPER

Highland Valley Copper (97.5%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                                March 31
                                                            2010       2009
---------------------------------------------------------------------------
Tonnes milled (000's)                                      9,920     10,972

Copper
 Grade (%)                                                  0.30       0.30
 Recovery (%)                                               87.0       84.4
 Production (000's tonnes)                                  25.9       27.4
 Sales (000's tonnes)                                       23.5       34.5
Molybdenum
 Production (million pounds)                                 1.8        1.4
 Sales (million pounds)                                      1.7        1.3
Cost of sales ($ millions)
 Operating costs                                          $   66     $   91
 Distribution costs                                       $    7     $    8
 Depreciation and amortization                            $   21     $   15
Operating profit summary ($ millions)
 Before depreciation, amortization and price adjustments  $  118     $   51
 Price adjustments - positive (negative)                      18         36
 Depreciation and amortization                               (21)       (15)
---------------------------------------------------------------------------
 After depreciation, amortization and price adjustments   $  115     $   72
---------------------------------------------------------------------------



Highland Valley Copper's first quarter operating profit of $118 million, before
pricing adjustments, more than doubled from $51 million a year ago.
Significantly higher copper prices in the quarter were partially offset by a 32%
reduction in sales volumes, as sales in the first quarter of 2009 were unusually
high due to timing of shipments.


Copper production of 25,900 tonnes was 5% lower than the same period last year
as a result of reduced mine production due to geotechnical constraints in the
Valley pit. The reduction in throughput was partially offset by improved copper
recovery. Copper grades were similar to the same period last year. Molybdenum
production of 1.8 million pounds was 29% higher than a year ago as a result of
successful implementation of recovery improvement projects and a reduction of
in-process inventory this quarter.


Resolving the geotechnical constraints has resulted in revised pit slope and
dewatering designs to ensure long term stability of the Valley pit. These have
been completed and are now being optimized. All mining equipment to complete the
additional stripping requirements on the east wall has been mobilized and the
stripping is proceeding on schedule. We continue to expect that Highland
Valley's copper production will be approximately 100,000 to 105,000 tonnes in
2010.


Antamina (22.5%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                              March 31
                                                            2010       2009
---------------------------------------------------------------------------
Tonnes milled (000's)
 Copper-only ore                                           3,727      4,012
 Copper-zinc ore                                           5,064      3,841
 --------------------------------------------------------------------------
                                                           8,791      7,853
Copper (note 1)
 Grade (%)                                                  1.02       1.22
 Recovery (%)                                               78.5       83.4
 Production (000's tonnes)                                  68.8       79.0
 Sales (000's tonnes)                                       62.5       88.4
Zinc (note 1)
 Grade (%)                                                  2.58       2.94
 Recovery (%)                                               84.3       83.5
 Production (000's tonnes)                                 110.1       92.4
 Sales (000's tonnes)                                      115.8       85.5
Molybdenum
 Production (million pounds)                                 1.2        2.1
 Sales (million pounds)                                      1.0        2.5
Cost of sales (US$ millions)
 Operating costs                                           $ 111      $ 120
 Distribution costs                                        $  25      $  20
 Royalties and other costs (note 2)                        $  52      $   8
 Depreciation and amortization                             $  25      $  24
Operating profit summary (our 22.5% share) ($ millions)
 Before depreciation, amortization and price adjustments   $  96      $  63
 Price adjustments - positive (negative)                       5         21
 Depreciation and amortization                                (5)        (7)
---------------------------------------------------------------------------
 After depreciation, amortization and price adjustments    $  96      $  77
---------------------------------------------------------------------------
(1) Copper ore grades and recoveries apply to all of the processed ores.
    Zinc ore grades and recoveries apply to copper-zinc ores only.
(2) In addition to royalties paid by Antamina, we also pay a royalty in
    connection with the acquisition of our interest in Antamina
    equivalent to 7.4% of our share of cash flow distributed by the
    mine.



Our 22.5% share of Antamina's operating profit, before depreciation and pricing
adjustments, was $96 million in the first quarter compared with $63 million in
the same period last year.


Tonnes milled in the first quarter increased by 12% compared with a year ago,
despite the greater proportion of harder copper-zinc ores processed. The mix of
mill feed in the first quarter was 42% copper-only ore and 58% copper-zinc ore,
compared to 51% and 49%, respectively, in the same period a year ago. The lower
proportion of copper-only ore and resulting lower mill recoveries in the quarter
resulted in copper production of 68,800 tonnes in the first quarter, a 13%
decline over a year ago. Conversely, zinc production increased by 19% to 110,100
tonnes due to the throughput of higher copper-zinc ore processed in the quarter.
Molybdenum production was significantly lower in the period as a result of lower
grades and recoveries.


The Antamina expansion project cost forecast remains at US$1.3 billion. The
project is proceeding on time and on budget. To date, approximately 310,000
hours have been expended on the project without a lost time injury. Total
project progress is approximately 11%. To date, commitments on the project are
approximately US$360 million and total incurred costs are approximately US$64
million. When completed, the project is expected to increase mill throughput by
38% to 130,000 tonnes per day by late 2011.


Quebrada Blanca (76.5%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                              March 31
                                                           2010        2009
---------------------------------------------------------------------------
Tonnes placed (000's)
 Heap leach ore                                           1,999       1,836
 Dump leach ore                                           3,214       1,573
 --------------------------------------------------------------------------
                                                          5,213       3,409
Grade (TCu%) (note 1)
 Heap leach ore                                            1.07        1.23
 Dump leach ore                                            0.55        0.48
Production (000's tonnes)
 Heap leach ore                                            15.1        15.7
 Dump leach ore                                             7.0         5.9
 --------------------------------------------------------------------------
                                                           22.1        21.6
Sales (000's tonnes)                                       24.8        21.2
Cost of sales (US$ million)
 Operating costs                                         $   60      $   40
 Distribution costs                                      $    2      $    2
 Depreciation and amortization                           $   30      $   27
Operating profit summary ($ millions) (note 2)
 Before depreciation, amortization and price adjustments $  123      $   41
 Price adjustments - positive (negative)                      -           -
 Depreciation and amortization                              (31)        (34)
---------------------------------------------------------------------------
 After depreciation, amortization and price adjustments  $   92      $    7
---------------------------------------------------------------------------

(1) TCu% is the percent assayed total copper grade.
(2) Results do not include a provision for the 23.5% non-controlling
    interest in Quebrada Blanca.



Quebrada Blanca's first quarter operating profit, before depreciation and
pricing adjustments, was $123 million compared with $41 million in the first
quarter of 2009 as a result of significantly higher copper prices and a higher
sales volume.


Copper production in the first quarter of 22,100 tonnes was slightly higher than
a year ago. Sales volumes of 24,800 tonnes in the first quarter were 17% higher
than the same period last year due to the timing of shipments.


Cost of sales in the first quarter was $60 million compared with $40 million
last year. Last year's costs reflected the reversal of an $8 million finished
product inventory provision taken in 2008 when prices declined below cost. Costs
of sales were also higher in 2010 as a result of the higher sales volumes and
increased costs for operating supplies and electricity.


Carmen de Andacollo (90%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                               March 31
                                                             2010      2009
---------------------------------------------------------------------------
Tonnes placed (000's)
 Heap leach ore                                               587       959
 Dump leach ore                                                37       237
 ---------------------------------------------------------------------------
                                                              624     1,196
Grade (TCu%) (note 1)
 Heap leach ore                                              0.49      0.63
 Dump leach ore                                              0.46      0.29
Copper cathode production (000's tonnes)
 Heap leach ore                                               2.1       4.2
 Dump leach ore                                               0.8       1.1
 ---------------------------------------------------------------------------
                                                              2.9       5.3
Copper contained in concentrate production (000's tonnes)     1.4         -
Sales of copper cathode (000's tonnes)                        3.5       5.3
Cost of sales (US$ million)
 Operating costs                                           $   11   $     7
 Distribution costs                                        $    -   $     1
 Depreciation and amortization                             $    7   $    11
Operating profit (loss) summary ($ millions) (note 2)
 Before depreciation, amortization and price adjustments   $   15   $    12
 Price adjustments - positive (negative)                        -         1
 Depreciation and amortization                                 (7)      (12)
----------------------------------------------------------------------------
 After depreciation, amortization and price adjustments    $    8   $     1
----------------------------------------------------------------------------

(1) TCu% is the percent assayed total copper grade.
(2) Results do not include a provision for the 10% non-controlling interest
    in Andacollo.



Carmen de Andacollo's operating profit, before depreciation and pricing
adjustments, was $15 million in the first quarter compared with $12 million in
the same period last year. Higher copper prices were primarily offset by lower
sales volumes.


As planned, copper cathode production of 2,900 tonnes in the first quarter was
45% lower than a year ago as the mine is transitioning from mining the supergene
deposit to the primary hypogene zone. Sales volumes of 3,500 tonnes in the first
quarter were 34% lower than the same period last year, reflecting the reduced
production levels.


Cost of sales in the first quarter was $11 million compared with $7 million last
year. Last year's costs reflected the reversal of a $6 million finished product
inventory provision taken in 2008 when prices declined below cost.


Initial production from the copper concentrator project was 1,400 tonnes of
copper contained in concentrate in the first quarter. The first shipment of
concentrate is scheduled for the end of April, 2010.


The Carmen de Andacollo concentrator plant was commissioned in late 2009 and is
ramping up to full production, substantially in accordance with plan. The plant
is expected to reach design tonnage by October, 2010. For accounting purposes,
the plant has not yet reached commercial production and all costs associated
with the project and production are currently being capitalized. The new plant
is expected to produce 80,000 tonnes of copper and 55,000 ounces of gold in
concentrate annually over the first 10 years of the operation.


The initial project is on track to be completed for the forecasted cost of
US$435 million, of which US$428 million had been spent by March 31, 2010. An
additional project to supply water from the Elqui River has an estimated cost of
US$40 million and will provide a long-term supply of process water for the
concentrator. Also a cover to minimize the generation of dust is being
constructed for the coarse ore stockpile at a cost of US$8 million. 

 
In January 2010, Carmen de Andacollo completed the previously announced sale of
an interest in gold reserves and resources to Royal Gold, Inc. ("Royal Gold").
Proceeds to Andacollo, on a 100% basis, were US$218 million and 1.2 million
common shares of Royal Gold, valued at US$53 million. Royal Gold's production
entitlement is equivalent to 75% of the payable gold produced until total
cumulative production reaches 910,000 ounces of gold, and 50% thereafter. The
transaction was treated as the sale of a mineral property interest and the total
consideration was accounted for as a recovery of the mineral property costs.
Accordingly, no gain or loss was recorded on the transaction.


Duck Pond (100%)

Duck Pond's operating profit, before depreciation and pricing adjustments, was
$15 million in the first quarter compared with $1 million in the same period
last year. Copper and zinc production in the quarter was 3,900 tonnes and 4,800
tonnes of contained metal, respectively, compared with 3,000 tonnes and 4,300
tonnes respectively last year.


Development Projects

Engineering studies for the Quebrada Blanca concentrate project continue to
progress. The work includes infill drilling to update the resource model,
metallurgical test work to confirm the process flow sheet, a series of studies
to determine water use, plant location and the preparation of preliminary
estimates of capital and operating costs. By the end of the first quarter, an
additional 10,300 meters of infill drilling was completed in the hypogene
deposit. At present, there are 5 drill rigs on site continuing with infill
drilling.


On the Relincho project, a pre-feasibility study is currently planned to
commence in the second quarter of 2010 for completion in the first quarter of
2011.


The Galore Creek project remains on care and maintenance. The project partners
have approved a pre-feasibility study so that updated capital and operating cost
estimates can be prepared for the project. The study is expected to be completed
in the first half of 2011.


COAL

Teck Coal Partnership (100%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                               March 31
                                                            2010       2009
---------------------------------------------------------------------------
Production (000's tonnes)                                  5,672      3,966
Sales (000's tonnes)                                       5,253      3,687
Average sale price
 US$/tonne                                                $  140     $  204
 C$/tonne                                                 $  150     $  237
Operating expenses (C$/tonne)
 Cost of product sold                                     $   61     $   61
 Transportation                                           $   30     $   36
 Depreciation and amortization                            $   26     $   24
Operating profit summary ($ millions)
 Before depreciation and amortization                     $  313     $  519
 Depreciation and amortization                              (140)       (90)
---------------------------------------------------------------------------
 After depreciation and amortization                      $  173     $  429
---------------------------------------------------------------------------



The results presented are for Teck's interests in six operating mines. Operating
profit, before depreciation, in the first quarter was $313 million compared with
$519 million last year primarily due to lower realized coal prices of C$150 per
tonne compared with C$237 per tonne in 2009.


Sales volumes of 5.3 million tonnes for the first quarter reflect normal
seasonality. Sales volumes are expected to be higher in each of the three
remaining quarters of calendar 2010 than they were in the first quarter and we
currently expect our calendar 2010 sales volume to be approximately 24 million
tonnes. Increased deliveries to our traditional contract customers and strong
demand from China for seaborne coking coal will contribute to the increase in
our sales volume in 2010 compared with 2009. During the final three quarters of
the year, we expect to deliver 328,000 tonnes at 2008 coal year prices, about
half of which will be shipped in the second quarter, and we expect to deliver
1.1 million tonnes of coal at 2009 coal year prices, almost all within the
second quarter.


Average US dollar selling prices in the first quarter were significantly lower
than in the same quarter in 2009 due to lower contract price settlements for the
2009 coal year that ran April 1, 2009 to March 31, 2010. During the first
quarter of 2010, approximately 400,000 tonnes of carryover tonnage was delivered
at higher 2008 coal year contract prices. The first quarter of 2010 also
included approximately 300,000 tonnes delivered at the new, higher, quarterly
contract prices effective for the new contract period.


Unit cost of production, before transportation and depreciation charges, was
approximately $55 per tonne, a decrease of approximately 12% compared with the
same quarter in 2009. This is due primarily to lower strip ratios and higher
production levels, which reduce the fixed costs per tonne of coal produced.
These reductions were partially offset by higher diesel fuel prices. We
currently expect unit cost of product produced and sold to be in the range of
$53 to $57 per tonne for calendar 2010. The cost of product sold in the quarter
was higher at $61 per tonne. This was, in part, the result of the sale from
inventory of higher cost coal produced in prior periods. In addition, the mix of
coal sold included an unusually large component of coal produced at our higher
cost mines compared to our lower cost mines. Should the sales mix have been
consistent with the production mix, the cost per tonne of product sold would
have been approximately $2 per tonne lower.


The decrease in unit transportation costs for the first quarter compared with
the same quarter in 2009 primarily reflects lower rail rates for the westbound
transportation of coal from our five British Columbia mine sites. Lower port
loading costs at Westshore Terminals were variable in part with average Canadian
dollar selling prices. Under the new agreements with Westshore Terminals that we
announced on February 12, 2010, port loading rates will no longer be linked to
coal prices for any of our products effective April 1, 2011. We currently expect
unit transportation costs to be in the range of $31 to $35 per tonne for
calendar 2010, with variations in ocean freight being the main driver behind the
wider range.


We have agreed prices with the majority of our customers for the first quarter
of the 2010 coal year that commenced April 1. Prices at or above US$200 per
tonne for our highest quality products are consistent with prices reportedly
achieved by our competitors. The market is in transition from the current
practice of setting pricing annually, to establishing pricing on a quarterly
basis. We expect that most sales will be settled on the basis of quarterly
pricing for the balance of 2010 although the actual outcome will depend upon
continued market acceptance and the desire of certain customers to settle on an
annual basis. Shorter contract pricing cycles combined with our continued sales
into new markets such as China should result in our 2010 sales revenue more
closely reflecting prevailing market prices in each respective quarter. We
currently expect to sell approximately 6.0 to 6.5 million tonnes in the second
quarter of 2010 at an average price of US$180 to US$185 per tonne. Average
selling prices reflect the impacts of carryover tonnage and the sale of a range
of hard coking coal products of various qualities as well as thermal and PCI
coal, which together normally comprise about 10% of our coal sales volume.


The union labour agreement for our Coal Mountain operations expired on December
31, 2009 and we are currently in the process of negotiating a new agreement. In
February, we announced that employees at our Line Creek mine had ratified a new
5 year collective agreement, replacing the previous agreement that expired May
31, 2009.


ZINC

Trail (100%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                              March 31
                                                           2010        2009
---------------------------------------------------------------------------
Metal production
 Zinc (000's tonnes)                                       68.4        58.4
 Lead (000's tonnes)                                       21.5        19.3
Metal sales
 Zinc (000's tonnes)                                       65.7        57.4
 Lead (000's tonnes)                                       18.2        17.3
Power
 Surplus power sold (GW.h)                                  144         276
 Power price (US$/MW.h)                                   $  47       $  37
Cost of sales ($ millions)
 Concentrates                                             $ 215       $ 158
 Operating costs                                          $  86       $  78
 Distribution costs                                       $  24       $  25
 Depreciation and amortization                            $  13       $  13
Operating profit summary ($ millions)
 Before depreciation and amortization                     $  52       $  31
 Depreciation and amortization                              (13)        (13)
---------------------------------------------------------------------------
After depreciation, amortization and price adjustments    $  39       $  18
---------------------------------------------------------------------------



Operating profit, before depreciation, at Trail's metal operations was $45
million in the first quarter compared with $20 million in the same period last
year due to significantly higher prices and stronger sales for both zinc and
lead. Production of zinc in the quarter was significantly ahead of the first
quarter of 2009 due to the production curtailments which were put in place in
2009 as a result of market conditions. Production of lead was also higher in the
quarter than in the comparable period last year due to higher feed rates to the
KIVCET furnace and a higher lead content in the feed.


Operating profit, before depreciation, from surplus power sales declined to $7
million in the first quarter from $11 million a year ago. The metallurgical
plants ran at full rates and a one-third interest in the Waneta Dam was sold to
BC Hydro in the quarter. Consequently, surplus power sales volumes decreased to
144 gigawatt hours from 276 gigawatt hours in the first quarter of 2009. Power
prices averaged US$47 per megawatt hour in the first quarter compared with US$37
per megawatt hour in 2009. The sale of a one-third interest in the Waneta Dam
will reduce the amount of surplus power available for sale to nominal levels
when metallurgical plants operate at full capacity.


Upper Columbia River Basin (Lake Roosevelt)

Teck American made substantial progress on the remedial investigation of the
Upper Columbia River that it is conducting pursuant to a settlement agreement
reached with the United States government, including the US Environmental
Protection Agency ("EPA"). Fish sampling was completed in the quarter. Sampling
of beaches and surface water is expected to be completed by year end.


Discovery and motion proceedings continue in the Lake Roosevelt litigation in
the Federal District Court for the Eastern District of Washington. The first
phase of the case, dealing with liability under CERCLA for cost recovery and
natural resource damages, is scheduled to be tried in June 2011.


Red Dog (100%)

Operating results at the 100% level are summarized in the following table:



                                                         Three months ended
                                                               March 31
                                                            2010       2009
---------------------------------------------------------------------------
Tonnes milled (000's)                                        865        790
Zinc
 Grade (%)                                                  18.9       21.2
 Recovery (%)                                               81.2       82.0
 Production (000's tonnes)                                 132.9      137.4
 Sales (000's tonnes)                                      128.0       97.9

Lead
 Grade (%)                                                   6.3        5.8
 Recovery (%)                                               64.2       70.5
 Production (000's tonnes)                                  35.0       32.3
 Sales (000's tonnes)                                          -          -
Cost of sales (US$ millions)
 Operating costs                                          $   36     $   28
 Distribution costs                                       $   22     $   19
 Royalties (NANA and State)                               $   20     $   (2)
 Depreciation and amortization                            $   14     $   11
Operating profit summary ($ millions)
 Before depreciation, amortization and price adjustments  $   94     $   29
 Pricing adjustments - positive (negative)                   (16)         6
 Depreciation and amortization                               (15)       (14)
---------------------------------------------------------------------------
 After depreciation, amortization and price adjustments   $   63     $   21
---------------------------------------------------------------------------



Red Dog's operating profit, before depreciation and pricing adjustments,
increased to $94 million in the first quarter compared with $29 million in the
same period last year. The significant increase in operating profit was a result
of substantially higher zinc prices, which doubled compared with a year ago.
Combined with the higher zinc prices were increased zinc sales volumes, which
were 31% higher than a year ago due to the timing of shipments.


Zinc production in the first quarter was slightly lower than last year at
132,900 tonnes due to the lower zinc ore grade in the bottom of the main pit.
Lead production was 8% higher than in the comparable period due to significantly
higher lead ore grade.


At March 31, 2010, we had approximately 100,000 tonnes of contained zinc
available for sale from the 2009 shipping season, excluding production inventory
at the site. Sales volumes of contained metal are estimated at approximately
70,000 tonnes in the second quarter.


Aqqaluk Permitting

On receipt of Supplemental Environmental Impact Statement ("SEIS") and new
National Pollutant Discharge Elimination System ("NPDES") and other required
permits, we expect to start pre-stripping of the Aqqaluk deposit in 2010. It is
anticipated that the Aqqaluk deposit will be the main ore supply for the next 20
years, from 2011 onwards.


On December 15, 2009, the State of Alaska issued a certification of the NPDES
Permit to be issued by the EPA under Section 401 of the US Clean Water Act. On
January 15, 2010, local tribal and environmental groups filed an appeal of the
certification asserting that certain provisions do not comply with the Clean
Water Act. If successful, the appeal could result in revisions to the NPDES
Permit. The certification will remain in effect pending resolution of the appeal
and will not affect the development of the Aqqaluk deposit.


On January 8, 2010, the EPA approved the Aqqaluk SEIS and, simultaneously,
issued the new NPDES Permit. On February 16, 2010, the same groups that appealed
the 401 Certification filed a petition for review of the NPDES Permit. On
February 26, 2010, the EPA notified us that, as a result of the appeal, the
conditions of the new permit governing effluent limitations for lead, selenium,
zinc, cyanide and total dissolved solids ("TDS") were stayed pending a
resolution of the appeal by the Environmental Appeal Board. On March 17, 2010,
the limitations were withdrawn by the EPA to allow them additional time to
consider arguments raised by the appeal and to discuss these issues with the
State of Alaska. We understand that the EPA intends to reissue the new
limitations later this year. Until attainable limitations are issued by the EPA,
the corresponding provisions of our existing permit will remain in effect. The
existing permit contains an effluent limitation for TDS that the mine cannot
meet. We are seeking direction from the EPA before proceeding with a decision on
the development of Aqqaluk.


Other State and local permits required for the development of Aqqaluk were
received in December. The appeal period for those permits has expired. A permit
that allows us to operate in the wetlands area of Aqqaluk was issued by the Army
Corps of Engineers. There is no specific period established for an appeal of
this permit. An appeal of the SEIS or wetlands permit could also delay access to
the Aqqaluk deposit. Our current operating plan is to continue to mine the main
pit until mid-2011, but in order to maintain efficient production rates, this
ore will eventually need to be supplemented with ore from Aqqaluk. Permit
appeals that delay access to Aqqaluk or uncertainty with respect to the status
of the NPDES permit could affect our transition plan and production at Red Dog
could be curtailed in October, 2010.


We and our partner, NANA, have been working with the public agencies involved
and have held discussions with some of the appellants. We believe that the
regulatory process has been appropriate and robust and will be sustained on
appeal, and that appropriate effluent limitations will ultimately be issued.
Nonetheless, there can be no assurance that appeals or delays in permit
uncertainty will not delay the development of Aqqaluk. We are developing
contingency plans to minimize any potential disruption to the operation.


ENERGY

Fort Hills Project

The timing of a final investment decision on the Fort Hills oil sands project
remains uncertain, pending the completion of a project review by Suncor, the
operator and 60% partner. Suncor has indicated the review should be complete
during the second half of 2010. Spending on the project has been significantly
reduced and the workforce downsized to reflect the lower level of activity.
Suncor has provided a forecast project spending estimate of $33 million for
2010, of which our share would be $9 million.


Frontier and Equinox Projects

Engineering contracts were awarded during the first quarter and studies have
started on the Frontier Project which will include an option of developing
Equinox as a satellite operation. The results of these studies are expected in
late 2010 and will form the basis for a planned regulatory application to be
prepared in the first half of 2011. During the 2010 winter drilling season 83
core holes were completed on the Frontier Project. Analytical testing has
started and is expected to be completed during the third quarter.


COSTS AND EXPENSES

Administration and general expenses were $70 million in the first quarter
compared with $31 million last year. The increase was primarily due to higher
stock-based compensation that is linked to our share price, which was
significantly higher in the first quarter of 2010 compared with the same period
last year.


Our interest and financing expense was $161 million in the quarter compared with
$137 million a year ago. This increase was a result of higher interest rates,
which came into effect after the refinancing and extension of the debt incurred
on the acquisition of Fording in October, 2008. Initially this debt was
short-term and bore relatively low rates of interest. However, our higher credit
spread and the longer maturities of our senior secured notes resulted in higher
average interest rates and higher interest charges despite significant
reductions in our overall debt levels. Our debt and interest charges are
denominated in US dollars and fluctuations in the exchange rate also affect
interest expense. A weaker US dollar also served to reduce these amounts in the
first quarter compared with a year ago.


Other income, net of other expenses, was $784 million in the first quarter
compared with other expense, net of other income, of $62 million last year.
Significant items in the first quarter included a $656 million gain on the sale
of a one-third interest in the Waneta Dam, a $50 million gain on the sale of our
Turkish gold projects and a $56 million non-cash foreign exchange gain. The
non-cash foreign exchange translation gain on our debt totalled $241 million, of
which $57 million was recorded in other income and $184 million in other
comprehensive income. The portion credited to other comprehensive income relates
to that portion of our US dollar debt that is designated as a hedge against our
investments in subsidiaries whose functional currency is the US dollar. Other
income also included a $33 million charge, as we wrote-off unamortized finance
fees on the early repayment of the debt.


Provision for Income and Resource Taxes

Income and resource taxes for the quarter were $203 million, or 18% of pre-tax
earnings, which is significantly lower than the Canadian statutory tax rate.
This is the result of significant capital gains in the quarter, which are
subject to the lower capital gains tax rate. This was partially offset by the
effect of resource taxes in Canada.


Income tax pools arising out of the Fording transaction currently shield us from
cash income taxes, but not resource taxes, in Canada. Canadian Development
Expenditure tax pools and tax loss carry forwards primarily generated by those
pools are $10 billion. We remain subject to cash taxes in foreign jurisdictions
and cash resource taxes in Canada.


FINANCIAL POSITION AND LIQUIDITY

Our financial position and liquidity continued to improve significantly during
the first quarter of 2010. This was a result of the substantial cash flow
derived from our operations and the completion of the sale of our non-core
assets.


Cash flow from operations was $480 million in the first quarter compared with
$1.1 billion a year ago. Cash flow in the first quarter last year had benefited
from a reduction in working capital as a result of tax refunds of $801 million.


Expenditures on property, plant and equipment were $147 million in the first
quarter and included $70 million on sustaining capital and $77 million on
development projects. The largest components of sustaining expenditures were at
Teck Coal and Highland Valley Copper. The Teck Coal expenditures are largely to
enable us to incrementally expand production at existing operations. Development
expenditures included $28 million for preparatory stripping for Highland Valley
Copper's mine life extension project and $28 million on the development of the
hypogene deposit at Carmen de Andacollo.


Cash proceeds from the sale of non-core assets in the first quarter totalled
$1.1 billion. The amount was comprised of $825 million from the sale of a
one-third interest in the Waneta Dam, $230 million of cash proceeds received
from the sale of gold reserves and resources from Carmen de Andacollo and $24
million from the sale of gold projects in Turkey. In addition to the cash
proceeds received from the sale of the future gold production from Carmen de
Andacollo to Royal Gold, Inc, we received 1.2 million shares of Royal Gold. The
shares have a current market value of $57 million, of which our share is 90%. On
the sale of the Turkey gold projects to Alamos Gold Inc, we received 2.4 million
shares of Alamos Gold, which have a current market value of $33 million.


Our total debt balance was $5.8 billion at March 31, 2010. Repayments on our
term loan were $2.0 (US$1.9) billion in the quarter, reducing our term loan to
US$416 million at March 31, 2010. Since we acquired the Fording assets in
October 2008 we have reduced our total debt by $7.6 billion as at March 31,
2010. On April 19, 2010 we gave notice to our term lenders of our intention to
repay the remainder of the term loan on April 22, 2010.


A summary of our debt positions and credit ratios are summarized in the
following table.




---------------------------------------------------------------------------
                                                   March 31,    December 31,
                                                       2010            2009
---------------------------------------------------------------------------
Term loan                                           $   416         $ 2,325
Fixed rate term notes                                 5,089           5,086
Other                                                   197             205
---------------------------------------------------------------------------
Total debt (US$ in millions)                        $ 5,702         $ 7,616
---------------------------------------------------------------------------
Total debt (C$ in millions)                         $ 5,793         $ 8,004
---------------------------------------------------------------------------
Cash balances (C$ in millions)                      $   774         $ 1,420
---------------------------------------------------------------------------
Net debt (C$ in millions)                           $ 5,019         $ 6,584
---------------------------------------------------------------------------
Debt to debt-plus-equity                                 27%             36%
---------------------------------------------------------------------------
Net debt to net-debt-plus-equity                         25%             31%
---------------------------------------------------------------------------



We also have committed bank credit facilities aggregating $1.1 billion, the
majority of which mature in 2012 and beyond. Our current unused credit lines
under these facilities after drawn letters of credit amount to $1.0 billion.
Since December 31, 2009 there have been several changes to the credit ratings of
Teck and its outstanding debt. As of March 4, 2010, Moody's rates Teck as Ba1
with such rating under review for a further upgrade. As of April 16, 2010,
Standard & Poor's rates Teck as BBB with a stable outlook. As of April 15, 2010,
Dominion Bond Rating Service rates Teck as BBB (low) with a positive trend. As
of April 5, 2010, Fitch Ratings rates Teck as BBB- with a stable outlook.


COMPREHENSIVE INCOME

We recorded comprehensive income of $909 million in the first quarter,
consisting of $937 million of regular earnings and $28 million of other
comprehensive losses. The most significant component of other comprehensive
losses in the quarter was currency translation adjustments on self-sustaining
foreign subsidiaries. Currency translation gains and losses are held in
accumulated other comprehensive income, net of taxes, until they are realized at
which time they are included in earnings.


OUTLOOK

The information below is in addition to the disclosure concerning specific
operations included above in the Operations and Corporate Development sections
of this document.


General Economic Conditions

The markets in which we sell our products continue to improve. Base metal prices
are significantly higher and we have seen improvement in customer demand. Steel
industry utilization rates in the OECD have continued to improve and additional
steelmaking coal demand in China has resulted in an increased global demand.
Spot prices for metallurgical coal have been higher than the previous annual
contract price, and the market is moving to a quarterly pricing cycle for the
next quarter. While general economic conditions have improved and stability
appears to be returning to financial and commodity markets, uncertainty
concerning the short and medium term global economic outlook persists. We
continue to closely monitor these developments and their effect on our business.


Capital Expenditures

Our planned capital expenditures for 2010 are approximately $1.05 billion,
including $375 million of sustaining capital expenditures and $675 million on
development projects. We may authorize further capital expenditures during the
year depending on commodity markets, our financial position and other factors.
We also expect to spend approximately $9 million on our share of costs for the
Fort Hills oil sands project.


Foreign Exchange, Debt Revaluation and Interest Expense

The sales of our products are denominated in US dollars, while a significant
portion of our expenses are incurred in local currencies, particularly the
Canadian dollar. Foreign exchange fluctuations can have a significant effect on
our operating margins, unless such fluctuations are offset by related changes to
commodity prices.


Our US dollar denominated debt is subject to revaluation based on changes in the
Canadian/US dollar exchange rate. We designate up to $5 billion of our US dollar
denominated debt as a hedge against our US dollar denominated foreign
operations. As a result, any foreign exchange gains or losses arising on that
amount of our debt are recorded in other comprehensive income with the remainder
being charged to net earnings. On the repayment of our term loan, our US dollar
denominated debt will be approximately equal to our net investment in US dollar
denominated foreign operations and gains or losses on exchange fluctuations are
expected to become less significant.


INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) CHANGEOVER PLAN

Effective January 1, 2011 Canadian publicly listed entities will be required to
prepare their financial statements in accordance with International Financial
Reporting Standards ("IFRS"), instead of current Canadian GAAP. Due to the
requirement to present comparative financial information, the effective
transition date is January 1, 2010.


In 2008, we established an IFRS conversion team to lead the significant
undertaking of transition from Canadian GAAP to IFRS. We have prepared a
detailed IFRS conversion plan, which will continue to evolve to accommodate the
expected changes in IFRS accounting standards past 2011. We developed a
conversion plan to ensure timely and accurate reporting, and a smooth transition
to adopting IFRS including any required changes to accounting processes and
controls. We are developing and maintaining our IFRS competencies by addressing
ongoing training requirements at various levels of the organization.


We have identified four phases to our conversion: scoping and planning, detailed
assessment, implementation and post-implementation. The scoping and planning
phase and detailed assessment phase are complete and we are now in the
implementation phase.


Implementation

During the implementation phase thus far, we have identified implementation
requirements to effect management's preliminary accounting choices, developed
sample financial statements including note disclosures and assessed key
accounting policy decisions. We are now in the process of finalizing key
accounting policy decisions, calculating the opening balance sheet at January 1,
2010, implementing business and internal control requirements and preparing
other transitional reconciliations and disclosure requirements. The effects of
the IFRS transition are being quantified as each work stream is completed.


Through our detailed assessment and implementation work performed to date we
have identified below the areas that are expected to have an impact on our
financial statements on transition to IFRS and in future periods. We have not
yet determined the full impact of IFRS adoption as transition adjustments are
still being quantified and accounting policy recommendations still require
review and approval in certain areas. The majority of key accounting policy
decisions and IFRS 1, "First-Time Adoption of International Financial Reporting
Standards," optional exemptions are currently under review by senior management
and the Audit Committee of the Board of Directors. The policy decisions are
still expected to be approved in the first six months of 2010. We plan to
disclose our significant accounting policy choices once all policies and IFRS 1
option exemptions are approved.


The identified IFRS accounting impacts below should not be regarded as complete
or final as we have not completed our process of quantifying changes and
finalizing the policy choices. Significant ongoing projects could impact the
differences.


Impairment of Long-Lived Assets

Canadian GAAP uses a two-step approach to impairment testing for long-lived
assets. Step one of the current Canadian GAAP impairment test, which uses
undiscounted cash flows to identify possible impairments, does not exist under
IFRS. Instead, IAS 36 uses a one-step approach for both identifying and
measuring impairments, which is based on comparing the carrying value to the
recoverable amount. The recoverable amount is the higher of fair value less
selling costs and value in use, which is based on discounted cash flows. This
may result in impairments under IFRS where they do not exist under Canadian
GAAP.


In addition, under IAS 36 impairment losses recognized must be reversed if the
circumstances leading to the impairment change and cause the impairment to be
reduced. This is not permitted under Canadian GAAP.


Employee Future Benefits

IFRS 1 allows for an optional exemption on first-time adoption of IFRS to
recognize all unamortized actuarial gains and losses immediately to retained
earnings on transition date. Under IAS 19, the full amount of actuarial gains
and losses are permitted to be adjusted directly to Other Comprehensive Income,
as part of shareholders' equity, rather than recognized through the income
statement over time. IAS 19 also requires vested past service costs associated
with defined benefit plans to be expensed immediately. Canadian GAAP requires
the amortization of past service costs on a straight line basis over the average
remaining service life of employees. International Financial Reporting
Interpretations Committee ("IFRIC") 14 limits the pension asset that may be
recorded by an entity through an asset ceiling test and also requires
adjustments to be made to the pension liability for minimum funding
requirements.


Accounting for Joint Arrangements

Currently under Canadian GAAP, joint ventures are accounted for using the
proportionate consolidation method. Although proportionate consolidation is
currently permitted under IFRS, there is an expected change to IFRS that would
only allow the equity method of accounting for jointly controlled entities. As a
result, this will impact our current accounting treatment of proportionately
consolidating Antamina.


Foreign Exchange

Under IFRS 1, a first-time adopter can elect to reset its cumulative translation
account to zero on the transition date with the amount being adjusted to opening
retained earnings. We plan to take this IFRS 1 election.


Asset Retirement Obligations

IFRS differs from Canadian GAAP both in recognition and measurement of asset
retirement obligations. The recognition criteria under IFRS are more
encompassing through the inclusion of constructive obligations. Measurement
differences relate to the nature of costs included in estimates of future cash
flows to settle the obligation and the discount rate applied to future cash
flows.


Post-Implementation

The post-implementation phase will involve continuous monitoring of changes in
IFRS throughout the implementation process (through to 2011) and later as the
Roadmap for US consideration for adopting IFRS is established. We note that the
standard-setting bodies that determine Canadian GAAP and IFRS have significant
ongoing projects that could impact the differences between Canadian GAAP and
IFRS and their impact on our financial statements. In particular, we expect that
there may be additional new or revised IFRS in relation to consolidation, joint
ventures, financial instruments, hedge accounting, discontinued operations,
leases and employee benefits. We also note that the International Accounting
Standards Board is currently working on an extractive industries project, which
could significantly impact our financial statements primarily in the areas of
capitalization of exploration costs and disclosures. The IFRIC has added the
topic of accounting for production stripping costs to its agenda for review and
has since issued Staff Papers on "Accounting for Stripping Costs in the
Production Phase - Attribution of the Stripping Cost Asset" and "Accounting for
Stripping Costs in the Production Phase - Costs of Waste Removal and the
Associated Benefit." These IFRIC Staff Papers may lead to the development of an
IFRIC Interpretation that could impact our financial statements. We have
processes in place to ensure that potential changes are monitored and evaluated.
The impact of any new IFRS and IFRIC Interpretations will be evaluated as they
are drafted and published.


FINANCIAL INSTRUMENTS AND DERIVATIVES

We hold a number of financial instruments and derivatives, the most significant
of which are marketable securities, foreign exchange forward sales contracts,
fixed price forward metal sales contracts, prepayment rights on senior debt
notes, settlements receivable and payable and, previously, price participation
payments on the sale of the Cajamarquilla zinc refinery that expired at the end
of 2009. The financial instruments and derivatives are all recorded at fair
values on our balance sheet with gains and losses in each period included in
other comprehensive income, net earnings from continuing operations and net
earnings from discontinued operations as appropriate. Some of our gains and
losses on metal-related financial instruments are affected by smelter price
participation and are taken into account in determining royalties and other
expenses. All are subject to varying rates of taxation depending on their nature
and jurisdiction.


The after-tax effect of financial instruments on our net earnings for the
following periods is set out in the table below:




                                                         Three months ended
                                                               March 31
                                                          2010         2009
---------------------------------------------------------------------------
Price adjustments
 On prior quarter sales                                  $ (12)       $  14
 On current quarter sales                                   17           29
 --------------------------------------------------------------------------
                                                             5           43
Derivatives gains (losses)                                  32          (24)
---------------------------------------------------------------------------
                                                            37           19
Amounts included in discontinued operations
 Cajamarquilla sale price participation                      -            2
 --------------------------------------------------------------------------
                                                             -            2
---------------------------------------------------------------------------
Total                                                    $  37        $  21
---------------------------------------------------------------------------



QUARTERLY EARNINGS AND CASH FLOW



(in millions,
except for
share data)    2010               2009                        2008
----------------------------------------------------------------------------
                 Q1     Q4     Q3     Q2     Q1     Q4      Q3     Q2     Q1

Revenues     $1,900 $2,167 $2,131 $1,707 $1,669 $1,600  $1,740 $1,805 $1,510

Operating
 profit         605    777    694    636    627    190     679    869    605

EBITDA        1,511  1,042  1,236  1,123    708   (402)    791    934    638

Net earnings
 (loss)
 (note 1)       908    411    609    570    241   (607)    424    497    345

Earnings
 (loss)
 per share   $ 1.54 $ 0.70 $ 1.07 $ 1.17 $ 0.50 $(1.28) $ 0.95 $ 1.12 $ 0.78

Cash flow
 from
 operations     480    697    772    386  1,128    589     858    507    155
----------------------------------------------------------------------------

(1) Attributable to common shareholders of the company.



OUTSTANDING SHARE DATA

As at April 16, 2010 there were 580,043,777 Class B subordinate voting shares
and 9,353,470 Class A common shares outstanding. In addition, there were
6,548,263 director and employee stock options outstanding with exercise prices
ranging between $4.15 and $49.17 per share. More information on these
instruments and the terms of their conversion is set out in Note 14 of our 2009
year end financial statements.


INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal
control over financial reporting. Any system of internal control over financial
reporting, no matter how well designed, has inherent limitations. Therefore,
even those systems determined to be effective can provide only reasonable
assurance with respect to financial statement preparation and presentation.
There have been no changes in our internal control over financial reporting
during the quarter ended March 31, 2010 that have materially affected, or are
reasonably likely to materially affect, internal control over financial
reporting.


CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

This news release contains certain forward-looking information and
forward-looking statements as defined in applicable securities laws. All
statements other than statements of historical fact are forward looking
statements. These forward-looking statements, principally under the heading
"Outlook," but also elsewhere in this document, include estimates, forecasts,
and statements as to management's expectations with respect to, among other
things, our future production, earnings and cash flow, our plans for our oil
sands investments and other development projects, forecast production and
operating costs, expected progress and costs of our Andacollo concentrate and
Antamina expansion projects, the sensitivity of our earnings to changes in
commodity prices and exchange rates, the potential impact of transportation and
other potential production disruptions, the impact of currency exchange rates,
future trends for the company, progress in development of mineral properties,
future production and sales volumes, capital expenditures and mine production
costs, demand and market outlook for commodities, future commodity prices and
treatment and refining charges, the settlement of coal contracts with customers,
access to and treatment and disposal of process water at our operations, the
outcome of mine permitting currently underway, particularly our ability to
obtain the permits necessary for the development at the Aqqaluk deposit at our
Red Dog mine in light of appeals to those permits, and the outcome of legal
proceedings involving the company. These forward-looking statements involve
numerous assumptions, risks and uncertainties and actual results may vary
materially. 


These statements are based on a number of assumptions, including, but not
limited to, assumptions regarding general business and economic conditions,
interest rates, the supply and demand for, deliveries of, and the level and
volatility of prices of, zinc, copper and coal and other primary metals and
minerals as well as oil, and related products, the timing of the receipt of
regulatory and governmental approvals for our development projects and other
operations, our costs of production and production and productivity levels, as
well as those of our competitors, power prices, market competition, the accuracy
of our reserve estimates (including with respect to size, grade and
recoverability) and the geological, operational and price assumptions on which
these are based, conditions in financial markets and the future financial
performance of the company. The foregoing list of assumptions is not exhaustive.
Events or circumstances could cause actual results to vary materially.


Factors that may cause actual results to vary materially include, but are not
limited to, changes in commodity and power prices, changes in interest and
currency exchange rates, acts of foreign governments and the outcome of legal
proceedings, inaccurate geological and metallurgical assumptions (including with
respect to the size, grade and recoverability of mineral reserves and
resources), unanticipated operational difficulties (including failure of plant,
equipment or processes to operate in accordance with specifications or
expectations, cost escalation, unavailability of materials and equipment,
government action or delays in the receipt of government approvals, industrial
disturbances or other job action, adverse weather conditions and unanticipated
events related to health, safety and environmental matters), political risk,
social unrest, failure of customers or counterparties to perform their
contractual obligations, changes in our credit ratings, and changes or further
deterioration in general economic conditions.


Statements concerning future production costs or volumes, and the sensitivity of
the company's earnings to changes in commodity prices and exchange rates are
based on numerous assumptions of management regarding operating matters and on
assumptions that demand for products develops as anticipated, that customers and
other counterparties perform their contractual obligations, that operating and
capital plans will not be disrupted by issues such as mechanical failure,
unavailability of parts and supplies, labour disturbances, interruption in
transportation or utilities, adverse weather conditions, and that there are no
material unanticipated variations in the cost of energy or supplies.


We assume no obligation to update forward-looking statements except as required
under securities laws. Further information concerning risks and uncertainties
associated with these forward looking statements and our business can be found
in our Annual Information Form for the year ended December 31, 2009, filed on
SEDAR and on EDGAR under cover of Form 40F.


WEBCAST

Teck will host an Investor Conference Call to discuss its Q1/2010 financial
results at 11:00 AM Eastern time, 8:00 AM Pacific time, on Wednesday, April 21,
2010. A live audio webcast of the conference call, together with supporting
presentation slides, will be available at our website at www.teck.com. The
webcast is also available at www.earnings.com. The webcast will be archived at
www.teck.com.




Teck Resources Limited
Consolidated Statements of Earnings
(Unaudited)

---------------------------------------------------------------------------
                                                         Three months ended
                                                               March 31
(Cdn$ in millions, except for share data)                     2010     2009
---------------------------------------------------------------------------
Revenues                                                   $ 1,900  $ 1,669
Operating expenses                                          (1,056)    (852)
---------------------------------------------------------------------------
                                                               844      817
Depreciation and amortization                                 (239)    (190)
---------------------------------------------------------------------------
Operating profit                                               605      627

Other expenses
 General and administration                                    (70)     (31)
 Interest and financing (Note 10)                             (161)    (137)
 Exploration                                                   (10)     (11)
 Research and development                                       (7)      (6)
 Other income (expense) (Note 11)                              784      (62)
---------------------------------------------------------------------------
Earnings before the undernoted items                         1,141      380
Provision for income and resource taxes                       (203)    (140)
Equity loss                                                     (1)      (1)
---------------------------------------------------------------------------
Earnings from continuing operations                            937      239
Earnings from discontinued operations                            -       13
---------------------------------------------------------------------------
Earnings                                                   $   937  $   252
---------------------------------------------------------------------------
Attributable to:
 Non-controlling interests                                 $    29  $    11
 Shareholders of the company                                   908      241
---------------------------------------------------------------------------

Earnings per share
 Basic                                                     $  1.54  $  0.50
 Basic from continuing operations                          $  1.54  $  0.47

 Diluted                                                   $  1.53  $  0.50
 Diluted from continuing operations                        $  1.53  $  0.47
Weighted average shares outstanding (millions)               589.2    486.9
Shares outstanding at end of period (millions)               589.4    486.9
---------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.


Teck Resources Limited
Consolidated Statements of Cash Flows
(Unaudited)

                                                        Three months ended
                                                                 March 31
(Cdn$ in millions)                                            2010     2009
---------------------------------------------------------------------------
Operating activities
 Earnings from continuing operations                      $    937  $   239
 Items not affecting cash
  Depreciation and amortization                                239      190
  Provision for future income and resource taxes                32       61
  Equity loss                                                    1        1
  Gain on sale of investments and assets                      (712)    (205)
  Foreign exchange losses (gains)                              (63)     253
  Amortization and write-off of debt financing fees             40       40
  Other                                                        (62)      14
---------------------------------------------------------------------------
                                                               412      593
 Net change in non-cash working capital items                   68      535
---------------------------------------------------------------------------
                                                               480    1,128
Investing activities
 Property, plant and equipment                                (147)    (102)
 Investments and other assets                                   (4)    (232)
 Decrease in restricted cash                                    91        -
 Increase in temporary investments                               -       (2)
 Proceeds from the sale of investments and assets            1,082       95
---------------------------------------------------------------------------
                                                             1,022     (241)
Financing activities
 Repayment of debt                                          (2,019)    (131)
 Issuance of Class B subordinate voting shares                   4        -
 Distributions to non-controlling interests                    (13)     (13)
---------------------------------------------------------------------------
                                                            (2,028)    (144)
Effect of exchange rate changes on cash and
 cash equivalents held in US dollars                           (29)      15
---------------------------------------------------------------------------

Increase (decrease) in cash and cash equivalents from
 continuing operations                                        (555)     758
Cash received from discontinued operations                       -       24
---------------------------------------------------------------------------

Increase (decrease) in cash and cash equivalents              (555)     782
---------------------------------------------------------------------------

Cash and cash equivalents at beginning of period             1,329      850
---------------------------------------------------------------------------

Cash and cash equivalents at end of period                $    774  $ 1,632
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Supplemental cash flow information (Note 13)

The accompanying notes are an integral part of these financial statements.


Teck Resources Limited
Consolidated Balance Sheets
(Unaudited)

                                                      March 31, December 31,
(Cdn$ in millions)                                         2010        2009
---------------------------------------------------------------------------
ASSETS
Current assets
 Cash and cash equivalents                             $    774    $  1,329
 Restricted cash                                              -          91
 Income taxes receivable                                      5          38
 Accounts and settlements receivable and other              784         843
 Inventories                                              1,299       1,375
---------------------------------------------------------------------------
                                                          2,862       3,676
Investments (Note 4)                                      1,348       1,252

Property, plant and equipment                            21,735      22,426

Other assets (Note 5)                                       825         857

Goodwill                                                  1,647       1,662
---------------------------------------------------------------------------
                                                       $ 28,417    $ 29,873
---------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
 Accounts payable and accrued liabilities              $  1,230    $  1,252
 Current portion of long-term debt (Note 6)                 182       1,121
---------------------------------------------------------------------------
                                                          1,412       2,373
Long-term debt (Note 6)                                   5,611       6,883

Other liabilities (Note 7)                                  993       1,029

Future income and resource taxes                          4,927       5,007

Equity
 Attributable to shareholders of the company             15,376      14,487
 Attributable to non-controlling interests                   98          94
---------------------------------------------------------------------------
                                                         15,474      14,581
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                       $ 28,417    $ 29,873
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Contingencies (Note 15)

The accompanying notes are an integral part of these financial statements.


Teck Resources Limited
Consolidated Statements of Equity
(Unaudited)

                                                      March 31, December 31,
(Cdn$ in millions)                                        2010         2009
---------------------------------------------------------------------------
Share capital
 Class A common shares                                $      7     $      7
 Class B subordinate voting shares                       6,756        6,750
---------------------------------------------------------------------------
                                                         6,763        6,757
Contributed surplus                                         86           85
Non-controlling interests                                   98           94
Accumulated comprehensive income attributable to
 the shareholders of the company
 Retained earnings at beginning of period                7,307        5,476
 Earnings                                                  908        1,831
---------------------------------------------------------------------------
 Retained earnings at end of period                      8,215        7,307
 Accumulated other comprehensive income (Note 9)           312          338
---------------------------------------------------------------------------
                                                         8,527        7,645
---------------------------------------------------------------------------
                                                      $ 15,474     $ 14,581
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements.


Teck Resources Limited
Consolidated Statements of Comprehensive Income
(Unaudited)

                                                         Three months ended
                                                               March 31
(Cdn$ in millions)                                         2010        2009
---------------------------------------------------------------------------
Earnings                                                  $ 937       $ 252

Other comprehensive income (loss) in the period
 Currency translation adjustments:
  Unrealized gains (losses) on translation of
   self-sustaining foreign subsidiaries                    (185)        219
  Foreign exchange differences on debt designated as
   hedge of self-sustaining foreign subsidiaries
   (net of tax of $(23) and $30)                            161        (186)
---------------------------------------------------------------------------
                                                            (24)         33
 Available-for-sale instruments:
  Unrealized gains (net of taxes of $(2)and $(7))            12          61
  Gains reclassified to earnings on realization
   (net of taxes of $nil and $nil)                           (1)          -
---------------------------------------------------------------------------
                                                             11          61
 Derivatives designated as cash flow hedges:
  Unrealized gains (losses) (net of taxes of $(1) and $5)     2         (17)
  Losses (gains) reclassified to earnings on realization
   (net of taxes of $7 and $(26))                           (17)         41
---------------------------------------------------------------------------
                                                            (15)         24
---------------------------------------------------------------------------
Total other comprehensive income (loss)                     (28)        118
---------------------------------------------------------------------------
Total comprehensive income                                $ 909       $ 370
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Other comprehensive income (loss) attributable to:
 Non-controlling interests                                   (2)          2
 Shareholders of the company                                (26)        116
---------------------------------------------------------------------------
                                                            (28)      $ 118
---------------------------------------------------------------------------

Comprehensive income attributable to:
 Non-controlling interests                                   27          13
 Shareholders of the company                                882         357
---------------------------------------------------------------------------
                                                          $ 909       $ 370
---------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements.


Teck Resources Limited
Notes to Consolidated Financial Statements
(Unaudited)
---------------------------------------------------------------------------



1. BASIS OF PRESENTATION

Our interim consolidated financial statements have been prepared in accordance
with Canadian Generally Accepted Accounting Principles ("GAAP") using standards
for interim financial statements and do not contain all of the information
required for annual financial statements. Our statements follow the same
accounting policies and methods of application as our most recent annual
financial statements, except as described in Note 2. Accordingly, they should be
read in conjunction with our most recent annual financial statements. All dollar
amounts are disclosed in Canadian currency unless otherwise noted.


Certain comparative figures have been reclassified to conform to the
presentation adopted for the current period.


2. ADOPTION OF NEW ACCOUNTING STANDARDS

Business Combinations and Related Sections

In January 2009, the Canadian Institute of Chartered Accountants ("CICA") issued
Section 1582 "Business Combinations" to replace Section 1581. Prospective
application of the standard is effective January 1, 2011, with early adoption
permitted. This new standard effectively harmonizes the business combinations
standard under Canadian GAAP with International Financial Reporting Standards
("IFRS"). The new standard revises guidance on the determination of the carrying
amount of the assets acquired and liabilities assumed, goodwill and accounting
for non-controlling interests at the time of a business combination.


The CICA concurrently issued Section 1601 "Consolidated Financial Statements"
and Section 1602 "Non-Controlling Interests," which replace Section 1600
"Consolidated Financial Statements." Section 1601 provides revised guidance on
the preparation of consolidated financial statements and Section 1602 addresses
accounting for non-controlling interests in consolidated financial statements
subsequent to a business combination. These standards are effective January 1,
2011, unless they are early adopted at the same time as Section 1582 "Business
Combinations." We have chosen to early adopt Sections 1582, 1601 and 1602
effective January 1, 2010. As a result, non-controlling interests have been
presented within shareholders' equity on the balance sheet. The non-controlling
interests in income are no longer deducted in arriving at consolidated net
earnings. Consolidated other comprehensive income and consolidated comprehensive
income have been attributed to equity shareholders of the company and
non-controlling interests. There is no effect from adoption on previous business
combinations.


3. DISPOSITIONS

a) Andacollo Gold Stream

On January 29, 2010, Compania Minera Carmen de Andacollo ("Andacollo") sold an
interest in gold reserves and resources from the Andacollo mine to Royal Gold,
Inc. ("Royal Gold"). Under the agreement, Royal Gold will be entitled to payment
based on 75% of the payable gold produced until total cumulative production
reaches 910,000 ounces of gold, and 50% thereafter. Proceeds to Andacollo were
US$218 million in cash and 1.2 million common shares of Royal Gold, valued at
US$53 million at the sale date. We have recorded the transaction as a sale of a
partial mineral property interest and the total consideration was accounted for
as a recovery of mineral property costs. Accordingly, no gain or loss has been
recognized.


b) Interest in Waneta Dam

On March 5, 2010, we completed the sale of a one-third interest in the Waneta
Dam to BC Hydro for $825 million. A pre-tax gain of $656 million was realized on
the sale.


c) Agi Dagi and Kirazli Gold Projects

In January 2010, we sold our 60% interest in the Agi Dagi and Kirazli gold
projects in Turkey to Alamos Gold Incorporated, ("Alamos") in exchange for US$24
million and 2.4 million shares of Alamos. A pre-tax gain of $50 million was
realized on the transaction.


4. INVESTMENTS



---------------------------------------------------------------------------
                                                      March 31, December 31,
(Cdn$ in millions)                                        2010         2009
---------------------------------------------------------------------------
Available-for-sale investments:
 Marketable securities                                 $   342      $   245
Held for trading investments:
 Warrants                                                    2            2
                                                       --------------------
                                                           344          247
Investments accounted for under the equity method:
 Fort Hills Energy Limited Partnership (20% interest)      703          704
 Galore Creek Partnership (50% interest)                   301          301
                                                       --------------------
                                                         1,004        1,005
                                                       --------------------
                                                       $ 1,348      $ 1,252
                                                       --------------------
                                                       --------------------



5. OTHER ASSETS



--------------------------------------------------------------------------
                                                     March 31, December 31,
(Cdn$ in millions)                                       2010         2009
--------------------------------------------------------------------------
Pension assets                                          $ 247        $ 245
Future income and resource tax assets                     189          259
Derivative assets, net of current portion of
 $10 million (2009 - $41 million)                         121           95
Long-term deposits and receivables                        199          189
Other                                                      69           69
--------------------------------------------------------------------------
                                                        $ 825        $ 857
--------------------------------------------------------------------------
--------------------------------------------------------------------------



6. DEBT



---------------------------------------------------------------------------
(Cdn$ in millions)                                    March 31, December 31,
                                                          2010         2009
---------------------------------------------------------------------------
Term facility (US$423 million) (b)                   $     422      $ 2,443
7.0% notes due September 2012 (US$200 million)             202          209
9.75% notes due May 2014 (US$1,315 million)              1,240        1,280
5.375% notes due October 2015 (US$300 million)             302          313
10.25% notes due May 2016 (US$1,060 million)               992        1,025
10.75% notes due May 2019 (US$1,850 million)             1,739        1,799
6.125% notes due October 2035 (US$700 million)             695          719
Antamina senior revolving credit facility due
 August 2012                                                94           97
Other                                                      107          119
---------------------------------------------------------------------------
                                                         5,793        8,004
Less current portion of long-term debt                    (182)      (1,121)
---------------------------------------------------------------------------
                                                       $ 5,611      $ 6,883
---------------------------------------------------------------------------
---------------------------------------------------------------------------



a) Since December 31, 2009 there have been several changes to the credit ratings
of Teck and its outstanding debt. As of March 4, 2010, Moody's rates Teck as Ba1
with such rating under review for a further upgrade. As of April 16, 2010,
Standard & Poor's rates Teck as BBB with a stable outlook. As of April 15, 2010,
Dominion Bond Rating Service rates Teck as BBB (low) with a positive trend. As
of April 5, 2010, Fitch Ratings rates Teck as BBB- with a stable outlook. Should
Moody's upgrade its ratings by one notch to investment grade with a stable or
positive outlook, certain restrictive covenants under the 9.75%, 10.25% and
10.75% notes would be suspended and we would be able to release and discharge
the senior secured pledge bonds that secure our notes and bank credit facilities
and the guarantees and liens supporting those pledge bonds.


The subsidiary direct guarantees of the credit facilities and the 9.75%, 10.25%
and 10.75% notes, as opposed to the guarantees of the pledge bonds, are not
subject to the same provisions regarding automatic release and discharge upon
the ratings upgrade.


b) During the first quarter of 2010 we made US$1,942 million of repayments
towards the term loan facility using proceeds from asset sales and cash on hand.
The remaining term loan balance was US$423 million at March 31, 2010. On April
19, 2010, an additional US$123 million was repaid and we gave notice to retire
the term loan by paying the remaining balance of US$300 million on April 22,
2010. After this payment, we have no principal payment due on any debt until
August, 2012.


7. OTHER LIABILITIES



---------------------------------------------------------------------------
                                                     March 31,  December 31,
(Cdn$ in millions)                                       2010          2009
---------------------------------------------------------------------------
Asset retirement obligations                            $ 521       $   532
Other environmental and post-closure costs                 75            87
Pension and other employee future benefits                325           320
Long-term contractual obligations                          21            33
Derivative liabilities (net of current portion
 of $23 million (2009 - $33 million))                      24            37
Other                                                      27            20
---------------------------------------------------------------------------
                                                        $ 993       $ 1,029
---------------------------------------------------------------------------
---------------------------------------------------------------------------



8. SHAREHOLDERS' EQUITY

Stock-based Compensation

During the first quarter of 2010, we granted 1,289,600 Class B subordinate
voting share options to employees. These options have a weighted average
exercise price of $35.54, a term of 10 years and vest in equal amounts over 3
years. The weighted average fair value of Class B subordinate voting share
options issued was estimated at $11.81 per share option at the grant date using
the Black-Scholes option-pricing model. The option valuations were based on an
average expected option life of 6 years, a risk-free interest rate of 2.54%, a
dividend yield of 2.1% and an expected volatility of 37%.


During the first quarter of 2010, we issued 495,281 deferred and restricted
share units to employees and directors. Deferred and restricted share units
issued vest immediately for directors and vest in 3 years for employees. The
total number of deferred and restricted share units outstanding at March 31,
2010 was 4,078,365.


Stock-based compensation expense of $32 million (2009 - $8 million) was recorded
for the three months ended March 31, 2010 in respect of all outstanding share
options and units.


9. ACCUMULATED OTHER COMPREHENSIVE INCOME



---------------------------------------------------------------------------
                                                      March 31, December 31,
(Cdn$ in millions)                                        2010         2009
---------------------------------------------------------------------------
Accumulated other comprehensive income at beginning
 of period                                               $ 341        $ 263
Other comprehensive income (loss) for the period           (28)          78
---------------------------------------------------------------------------
Accumulated other comprehensive income at end of
 period                                                  $ 313        $ 341
---------------------------------------------------------------------------
---------------------------------------------------------------------------

The components of accumulated other comprehensive income are:

---------------------------------------------------------------------------
                                                      March 31, December 31,
(Cdn$ in millions)                                        2010         2009
---------------------------------------------------------------------------
Currency translation adjustment                          $ 201        $ 225
Unrealized gains on investments (net of tax of
 $(15) and $(13))                                          112          101
Unrealized gains on cash flow hedges (net of
 tax of $nil and $(6))                                       -           15
---------------------------------------------------------------------------
                                                         $ 313        $ 341
---------------------------------------------------------------------------
Accumulated other comprehensive income
 attributable to:
 Non-controlling interests                               $   1        $   3
 Shareholders of the company                               312          338
---------------------------------------------------------------------------
                                                         $ 313        $ 341
---------------------------------------------------------------------------
---------------------------------------------------------------------------



10. INTEREST AND FINANCING COSTS



---------------------------------------------------------------------------
                                                         Three months ended
                                                               March 31
(Cdn$ in millions)                                         2010        2009
---------------------------------------------------------------------------
Interest expense                                          $ 155       $ 107
Amortization of financing fees                                6          40
Less amounts capitalized                                      -         (10)
---------------------------------------------------------------------------
                                                          $ 161       $ 137
---------------------------------------------------------------------------
---------------------------------------------------------------------------



11. OTHER INCOME (EXPENSE)



---------------------------------------------------------------------------
                                                         Three months ended
                                                              March 31
(Cdn$ in millions)                                        2010         2009
---------------------------------------------------------------------------
Gain on sale of investments and assets                   $ 712        $ 205
Foreign exchange gains (losses)                             56         (244)
Interest income                                              4            4
Debt financing fees                                        (33)           -
Derivative gains (losses)                                   39          (34)
Reclamation for closed properties                           (2)          (2)
Other                                                        8            9
---------------------------------------------------------------------------
                                                         $ 784        $ (62)
---------------------------------------------------------------------------
---------------------------------------------------------------------------



12. EMPLOYEE FUTURE BENEFITS EXPENSE



------------------------------------------------------------------------
                                                      Three months ended
                                                            March 31
(Cdn$ in millions)                                     2010         2009
------------------------------------------------------------------------
Pension plans                                          $ 21         $ 17
Post-retirement benefit plans                             7            6
------------------------------------------------------------------------
                                                       $ 28         $ 23
------------------------------------------------------------------------
------------------------------------------------------------------------



13. SUPPLEMENTAL CASH FLOW INFORMATION



------------------------------------------------------------------------
                                                      Three months ended
                                                            March 31
(Cdn$ in millions)                                     2010         2009
------------------------------------------------------------------------
Income and resource taxes paid (received), net        $ 131       $ (804)
Interest paid                                          $ 33       $  122
------------------------------------------------------------------------
------------------------------------------------------------------------



14. ACCOUNTING FOR FINANCIAL INSTRUMENTS

Our derivative positions at March 31, 2010 are as follows:

a) Forward sales and purchase contracts and interest rate swaps



---------------------------------------------------------------------------
                                                                 Fair Value
                                                                      Asset
                                       2010 2011 2012 2013 Total (Liability)
---------------------------------------------------------------------------
                                                                   (Cdn$ in
                                                                   millions)
Zinc (millions of lbs)
 Fixed forward sales contracts           83   57    -    -   140
 Average price (US$/lb)                0.86 0.63    -    -  0.77      $ (46)

Zinc (millions of lbs) (i)
 Fixed forward purchase contracts        56   57    -    -   113
 Average price (US$/lb)                0.91 0.89    -    -  0.90         20
Interest rate swap (millions of US$)
 7% fixed rate swapped to
 LIBOR plus 2.14%                         -    -  100    -   100          8
 LIBOR plus 0.21% swapped to
 5.42% fixed rate                         -    -   17    -    17         (1)
US dollars (millions of $)
 Forward sales contracts                  -    -    5    7    12
 Average rate (CLP/US$)                   -    -  551  644   605          2
                                                                 ----------
                                                                      $ (17)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
i. From time-to-time, certain customers purchase refined metal products at
   fixed forward prices from our smelter and refinery operations. The
   forward purchase commitments for these metal products are matched to
   these fixed price sales commitments to customers. As at March 31, 2010,
   100 million pounds of zinc forward purchase contracts were offsetting
   positions to 100 million pounds of zinc forward sales contracts
   remaining from the Aur acquisition in 2007.



b) Pricing Adjustments

Sales of metals in concentrates are recognized in revenue on a provisional
pricing basis when title transfers and the rights and obligations of ownership
pass to the customer, which usually occurs on shipment. However, the final
pricing for the product sold is not determined at that time as it is
contractually linked to market prices at a subsequent date. These arrangements
have the characteristics of a derivative instrument as the value of our
receivable will vary as prices for the underlying commodities vary in the metal
markets. The net income impact of gains and losses on these financial
instruments is mitigated by smelter price participation, royalty interests,
taxes and non-controlling interests.


c) Prepayment Rights On Notes Due 2016 and 2019

Our prepayment rights in our 2016 and 2019 notes (Note 6) are considered
embedded derivatives that require separate accounting. These prepayment rights
are fair valued at each reporting period based on current market interest rates
for similar instruments and our credit spread and we have recorded a gain in
other income in the current quarter based on this appreciation in value.


15. CONTINGENCIES

We consider provisions for all our outstanding and pending legal claims to be
adequate. The final outcome with respect to actions outstanding or pending as at
March 31, 2010, or with respect to future claims, cannot be predicted with
certainty. Significant commitments and contingencies not disclosed elsewhere in
the notes to our financial statements are as follows:


a) Upper Columbia River Basin (Lake Roosevelt)

Teck American made substantial progress on the remedial investigation of the
Upper Columbia River that it is conducting pursuant to a settlement agreement
reached with the United States and the US Environmental Protection Agency
("EPA"). Fish sampling was completed in the quarter. Sampling of beaches and
surface water is expected to be completed by year end.


Discovery and motion proceedings continue in the Lake Roosevelt litigation in
the Federal District Court for the Eastern District of Washington. The first
phase of the case, dealing with liability under CERCLA for cost recovery and
natural resource damages, is scheduled to be tried in June 2011.


b) Red Dog Mine Permits

On receipt of Supplemental Environmental Impact Statement ("SEIS") and new
National Pollutant Discharge Elimination System ("NPDES") and other required
permits, we expect to start pre-stripping of the Aqqaluk deposit in 2010. It is
anticipated that the Aqqaluk deposit will be the main ore supply for the next 20
years, from 2011 onwards.


On December 15, 2009, the State of Alaska issued a certification of the NPDES
Permit to be issued by the EPA under Section 401 of the US Clean Water Act. On
January 15, 2010, local tribal and environmental groups filed an appeal of the
certification asserting that certain provisions do not comply with the Clean
Water Act. If successful, the appeal could result in revisions to the NPDES
Permit. The certification will remain in effect pending resolution of the appeal
and will not affect the development of the Aqqaluk deposit.


On January 8, 2010, the EPA approved the Aqqaluk SEIS and, simultaneously,
issued the new NPDES Permit. On February 16, 2010, the same groups that appealed
the 401 Certification filed a petition for review of the NPDES Permit. On
February 26, 2010, the EPA notified us that, as a result of the appeal, the
conditions of the new permit governing effluent limitations for lead, selenium,
zinc, cyanide and total dissolved solids ("TDS") were stayed pending a
resolution of the appeal by the Environmental Appeal Board. On March 17, 2010,
the limitations were withdrawn by the EPA to allow them additional time to
consider arguments raised by the appeal and to discuss these issues with the
State of Alaska. We understand that the EPA intends to reissue the new
limitations later this year. Until attainable limitations are issued by the EPA,
the corresponding provisions of our existing permit will remain in effect. The
existing permit contains an effluent limitation for TDS that the mine cannot
meet. We will be discussing that issue with the EPA before proceeding with a
decision on the development of Aqqaluk.


Other State and local permits required for the development of Aqqaluk were
received in December. The appeal period for those permits has expired. A permit
that allows us to operate in the wetlands area of Aqqaluk was issued by the Army
Corps of Engineers. There is no specific period established for an appeal of
this permit. An appeal of the SEIS or wetlands permit could also delay access to
the Aqqaluk deposit. Our current operating plan is to continue to mine the main
pit until mid-2011, but to maintain efficient production rates, this ore will
eventually need to be supplemented with ore from Aqqaluk. Permit appeals that
delay access to Aqqaluk or uncertainty with respect to the status of the NPDES
permit could affect our transition plan and production at Red Dog could be
curtailed in October, 2010.


We and our partner, NANA, have been working with the public agencies involved
and have held discussions with some of the appellants. We believe that the
regulatory process has been appropriate and robust and will be sustained on
appeal, and that appropriate effluent limitations will ultimately issue.
Nonetheless, there can be no assurance that appeals or permit uncertainty will
not delay the development of Aqqaluk. We are developing contingency plans to
minimize any potential disruption to the operation.


16. SEGMENTED INFORMATION

We have five reportable segments: copper, coal, zinc, energy and corporate based
on the primary products we produce or are developing. Prior year comparatives
have been restated to conform to current year presentation. The corporate
segment includes all of our initiatives in other commodities, our corporate
growth activities and groups that provide administrative, technical, financial
and other support to all of our business units.


Other corporate income (expense) includes general and administrative costs,
research and development and other income (expense).




                                    Three months ended March 31, 2010
(Cdn$ in millions)          Copper    Coal  Zinc  Energy  Corporate   Total
---------------------------------------------------------------------------

Segmented revenues         $   620   $ 790 $ 542  $    -     $    - $ 1,952
Less inter-segment revenues      -       -   (52)      -          -     (52)
---------------------------------------------------------------------------
Revenues                       620     790   490       -          - $ 1,900

Operating profit               322     173   110       -          -     605
Interest and financing          (1)     (1)    -       -       (159)   (161)
Exploration                     (6)      -    (2)      -         (2)    (10)
Other corporate income
 (expense)                       7      24   652       -         24     707
---------------------------------------------------------------------------

Earnings before taxes,
 equity earnings and
 discontinued operations       322     196   760       -       (137)  1,141
Capital expenditures           101      36     8       -          2     147
Total assets                 7,263  16,090 2,710   1,072      1,282  28,417
---------------------------------------------------------------------------


---------------------------------------------------------------------------
                                    Three months ended March 31, 2009
(Cdn$ in millions)          Copper    Coal  Zinc  Energy  Corporate   Total
---------------------------------------------------------------------------

Segmented revenues         $   447   $ 874 $ 397  $    -     $    - $ 1,718
Less inter-segment
 revenues                        -       -   (49)      -          -     (49)
---------------------------------------------------------------------------
Revenues                       447     874   348       -          - $ 1,669

Operating profit               158     429    40       -          -     627
Interest and financing          (3)      -     -       -       (134)   (137)
Exploration                     (9)      -    (1)      -         (1)    (11)
Other corporate income                   -
 (expense)                     (29)          (10)      -        (60)    (99)
---------------------------------------------------------------------------

Earnings before taxes,
 equity earnings and
 discontinued operations       117     429    29       -       (195)    380
Capital expenditures            76       8     8       7          3     102
Total assets                 8,236  17,880 2,758   1,129      1,967  31,970
---------------------------------------------------------------------------



17. SEASONALITY OF SALES

Due to ice conditions, the port serving our Red Dog mine is normally only able
to ship concentrates from July to October each year. As a result, zinc and lead
concentrate sales volumes are generally higher in the third and fourth quarter
of each year than in the first and second quarter.


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