Amid a national push to accelerate the development of major infrastructure in Canada, Teck Resources has announced that it has greenlit the extension of the Highland Valley Copper Mine to allow production up until 2046.
At first glance, this might appear as another ordinary project approval, but it’s quite the opposite. Amid trade disputes and uncertainty over U.S. tariffs, this is widely seen as a major gamble on critical minerals and resources. It also displays Canada’s focus — investments in resource projects to fuel the transition towards a net-zero economy and the nation’s ability to compete in the ever-changing global economy.
Wiring for the Future
Highland Valley is located near the Logan Lake region of interior British Columbia. The mine, which is one of the largest open-pit copper mines in Canada, has been in operation for decades. The current expansion project, pegged at between $2.1 billion and $2.4 billion, is touted by the company as one of the largest investments in the critical mineral sector in the province’s history. The mine is now expected to produce up to 132,000 tonnes of copper per year.
Copper is one of the most valuable metals in the current global economy, with demand projected to increase significantly as the world deals with the effects of climate change and the cost of transitioning towards renewable energy.
Volatility of Markets: Supply Chain Pressures and Tariffs
The project’s cost has risen from an earlier estimate of $1.8-$2.0 billion to $2.1-$2.4 billion, representing a significant increase. Teck explained that this rise was due to inflationary pressures and the potential impact of tariffs on construction materials and the procurement of mobile equipment for later phases. These substantial increases highlight the volatility of large-scale resource development projects in today’s economy—projects are not only affected by permitting, regulations, and environmental assessments. Geopolitical issues and trade policies, particularly protectionist measures, also have far-reaching consequences. These factors add more risks to an already uncertain natural resources sector in Canada, fueling investor caution. Within Canada, to remain competitive, the country must develop stronger internal supply chains resilient to shocks linked to global trade and simply streamline its regulatory processes, especially in a sector that is under increasing scrutiny from environmentalists, Indigenous communities, and the public.
Political Signals from Ottawa and Victoria
Prime Minister Mark Carney’s Bill C-5, which fast-tracks major projects considered in the “national interest,” recently passed the Senate. This law also aligns with B.C.’s Bill 15, which prioritizes infrastructure projects within the province and allows for expedited environmental assessments. Premier David Eby stated that the project demonstrates how B.C. can help drive the country’s economy in challenging times. The Federal Natural Resources Minister has said that this project “puts Canada on the map.” The coordinated efforts of both governments send a message to investors: all major projects will now benefit from a streamlined regulatory framework, enhancing predictability and confidence. The country is positioning itself as a faster, more reliable place to invest, without fully sacrificing its commitment to environmental integrity and Indigenous consultation.
The Forward Path: Still Unclear?
Despite the efforts of elected officials, politicians, and industry leaders, several crucial questions do remain about Canada’s role in the global economy:
- How does Canada fast-track major resource projects without compromising its climate goals?
- Can Canada compete with countries offering faster timelines and lower costs, without compromising on its democratic values and social acceptance?
- Is it possible to continuously develop non-renewable industries like mining while staying true to Indigenous reconciliation?
Conclusion
Teck’s Highland Valley expansion is more than just a mine extension—it poses a crucial question. Can Canada build strategic projects at scale, even as inflation continues to increase costs and trade barriers rise? Can it become a trusted global supplier of clean tech materials without repeating the mistakes of the past? Highland Valley is about something important: copper, confidence, and Canada’s place in a shifting world economy. The road ahead won’t be easy, but if done correctly, it might just be paved with something a little more valuable than gold.
The Ultimarii Team
