Teck Resources Ltd (TECK) 6-K, filed Apr 1, 2020

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

Dated: March 31, 2020

Commission File Number: 001-13184

TECK RESOURCES LIMITED

(Exact name of registrant as specified in its charter)

Suite 3300 – 550 Burrard Street, Vancouver, British Columbia V6C 0B3

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F Form 40-F X

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Teck Resources Limited<br><br> <br>(Registrant)
Date: April<br> 1, 2020	By:	/s/ Amanda R. Robinson
		Amanda R. Robinson
		Corporate Secretary

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated March 31, 2020
99.2	Press Release dated March 31, 2020

EXHIBIT 99.1

For Immediate Release<br><br> <br>20-22-TR	Date:	March 31, 2020

Teck Announces Updated QB2 Capital Estimate

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today announced an update to its capital estimate for the Quebrada Blanca Phase 2 (“QB2”) project.

At sanction in December 2018, the estimated escalated capital cost of the project was US$5.2 billion¹. The updated estimate remains at US$5.2 billion², and the go forward funding requirement from April 1, 2020 is estimated at US$ $3.9 billion³, assuming a CLP/USD rate of 775 over the remainder of the project. After project financing and partner contributions, Teck’s remaining required cash contribution toward project capital is estimated at US$880 million.

The revised estimate is based on a schedule that contemplates first production by Q2 2022, and includes a contingency of US$400 million. At the current spot exchange rate there would be an additional benefit of approximately US$240 million⁴ for the project. The estimate and schedule do not reflect the impact of the temporary suspension of project construction activities announced on March 18, 2020 in response to the COVID-19 pandemic. Further information on the potential impact of the suspension is provided below.

Considerable progress has been made across all areas of the project, and many of the highest risk activities are either completed or well-advanced. At suspension on March 18, 2020 overall progress on the project had reached 29%. The new capital estimate is based on a detailed review of all aspects of the QB2 project. Cost pressures have been largely offset by the depreciation of the Chilean peso.

“This has been a difficult period for the Chilean people as they undertake efforts to slow the spread of COVID-19, which has also impacted our people and project,” said Don Lindsay, President and CEO of Teck. “Our current focus is the health and safety of the reduced workforce remaining on the project required to maintain the facilities, and on being prepared for a rapid restart of construction activities when it is safe to do so.”

Although construction was proceeding materially in accordance with the planned construction program until the recent suspension, several external factors have extended the project schedule by approximately four months and have contributed to increasing costs. These factors include construction delays resulting from social unrest and delays in receiving certain permits and other regulatory approvals required for construction. Before the benefit of the weaker Chilean peso, these delays account for about half of the increase in costs. The other half of the cost increases can be attributed primarily to certain additional costs for safety and environmental management, additional road construction and maintenance costs, severe weather impacts, and below plan contractor performance during mobilization and ramp up.

Notes:

(1)	US$4.739 billion in constant Q2 2017 dollars plus estimated escalation of US$425 million (a range of US$300 to US$470 million provided in December 4, 2018 press release).<br> On a 100% go forward basis from January 1, 2019 assuming a CLP/USD exchange rate of 625, including escalation and excluding working capital or interest during construction.
(2)	On a 100% go forward basis from January 1, 2019 including escalation and excluding working capital or interest during construction using actual realized exchange rates<br> until March 30, 2020 and assuming a CLP/USD exchange rate of 775 from April 1, 2020.
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(3)	The project is currently being funded through the proceeds from the subscription by Sumitomo Metal Mining Co., Ltd and Sumitomo Corporation (“SMM and SC”) for a combined<br> 30% interest in the project and a US$2.5 billion project finance facility. No significant funding is expected to be required from Teck until the first quarter of 2021. Timing of equity contributions from Teck assumes project finance<br> facility and SMM and SC contributions associated with subscription spent before first draw. Thereafter, project finance facility used to fund all capital costs until target debt:capital ratio achieved on a cumulative basis, after which<br> point project finance and equity contributions are made ratably based on this same debt:capital ratio.
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(4)	Based on an assumed CLP/USD exchange rate of 850 and on the project’s current estimated CLP/USD exposure.
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Prior to the COVID-19 related suspension, the rate of construction progress was increasing steadily week-on-week, and on track to achieve our target rate of +5% per month by Q3 2020. All major contractors were mobilized and the project workforce was approximately 7,800 on site at any time, with a total workforce of 15,000. Numerous construction risks are now behind us with camp construction, other temporary facilities and initial earthworks activities completed. Engineering, procurement and contracting activities are approaching 100% and in close out, which also materially reduces cost risk for the balance of the project. The new estimate for both capital costs and schedule includes updated material quantities and productivities, together with actual contracts and purchase orders in place. Consequently, we are confident in the updated capital estimate and schedule before any impacts related to the COVID-19 suspension.

Update on COVID-19 impact

There have been no confirmed cases of COVID-19 associated with QB2 employees or contractors at the work site to date. While initially planned for a two-week suspension, project construction activities remain on hold. It is not currently possible to predict when the temporary suspension of construction will be lifted. Our priorities continue to be the safety of our reduced workforce and supporting Chilean efforts to limit transmission of COVID-19.

Assuming a 4 week construction suspension period, the impact is estimated to be approximately US$75 to $125 million and a schedule delay of up to 8 weeks, including demobilization, suspension and restart impacts. For each additional month of suspension, we estimate an additional impact of approximately US$25-50 million and one month of additional schedule delay. The final cost and schedule impact will depend on timing of a partial or full restart of construction activities, and it is possible that remobilization could take longer if the suspension period is significantly protracted.

During the suspension of construction we continue to advance procurement, manufacturing and other activities not directly related to site construction activities to accelerate future ramp up. Extensive planning continues for a safe and efficient remobilization once the decision to restart partial or full construction is made. Assuming full construction activities are restarted in the second quarter, the soonest we would expect first production is mid 2022.

Forward-Looking Statements

“should”, “would”, “might” or “will” be taken, occur, or be achieved. The forward-looking statements in this news release include statements regarding: the updated capital estimate for the QB2 project and costs related to the project; Teck’s remaining required contributions toward project capital; timing of first production; expected contingency requirements; project schedule expectations; project progress; the duration of the COVID-19 related suspension period; timing of restart of the project, duration of the suspension period and projected impact of the COVID-19 related construction suspension period; and expectations regarding QB2 activities to be undertaken during suspension of construction. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding: timely receipt of permits and other regulatory approvals; foreign exchange rates; inflation rates; construction progress and timing of restart of full construction activities; availability of labour; availability of project finance proceeds; performance by contractors, subcontractors and suppliers; there being no material and negative impact to the various contractors, suppliers and subcontractors for the QB2 project relating to COVID-19 or otherwise that would impair their ability to provide goods and services as anticipated. The projected capital and schedule estimates do not reflect the impact of the temporary suspension of project construction activities in response to the COVID-19 pandemic.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results and performance to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to: changes in general economic conditions; unanticipated permitting or construction issues, including but not limited to geotechnical or archeological issues, or suspension, withdrawal or lack of availability of permits and authorizations; unanticipated geotechnical conditions or other factors affecting the QB2 construction plan and budget including supplier, transportation, logistics or labour issues; adverse weather or natural disaster; community or social unrest; disruption of financial markets, including those affecting the project finance lenders, the company or our partners; additional measures imposed by regulatory authorities to implement or extend suspension of activities at QB2; measures imposed or undertaken by regulatory authorities or by the company, suppliers, contractors or subcontractors in response to COVID-19 that that might otherwise directly or indirectly affect the QB2 project; determination by the company to extend the suspension of construction at QB2 or expand the scope of suspended activities; and difficulties in remobilization and restart of QB2 construction due to various factors, including lack of availability of manpower or equipment.

Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission. Teck does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

About Teck

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.

Teck Media Contact:

        Chris Stannell

          Public Relations Manager

          604.699.4368

chris.stannell@teck.com

Teck Investor Contact:

        Fraser Phillips

        Senior Vice President, Investor Relations and Strategic Analysis

        604.699.4621

        fraser.phillips@teck.com

EXHIBIT 99.2

For Immediate Release<br><br> <br>20-23-TR	Date:	March 31, 2020

Teck Announces Q1 2020 Update

Vancouver, B.C. – Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) (“Teck”) today provided an update on Q1 2020 operations, preventative measures taken with respect to COVID-19 and updated its 2020 annual guidance.

“Notwithstanding the challenges in the month of March related to COVID-19, all of our operations remain in production and our steelmaking coal results significantly exceeded guidance,” said Don Lindsay, President and CEO. “We remain focused on ensuring we have the necessary measures in place to safeguard the health and safety of our people and communities, while maintaining safe operations.”

Q1 2020 Operations Update

Following a difficult start to the year, results in our Steelmaking Coal Business Unit improved significantly in late February and March. First quarter steelmaking coal sales are estimated at 5.6 million tonnes, exceeding our guidance of 4.8 to 5.2 million tonnes. At the same time, based on preliminary results we expect to report adjusted site cost of sales of approximately $65 per tonne, well below previous expectations.

Finished coal inventories at our mine sites were reduced during the quarter, supporting sales and increasing operational flexibility.

In spite of a difficult start to the year, our steelmaking coal logistics supply chain performed well for the remainder of the quarter, with both CP and CN recovering from early weather-related disruptions and blockades. All three ports also performed well, in particular Westshore Terminals, which had a strong March.

Our Neptune facility upgrade continues to advance and major equipment deliveries are on track. We expect the new shiploader, stacker/reclaimer, and single dumper replacement to be commissioned around year-end. Completion of construction is still expected in Q1 2021, with the new double dumper expected to be commissioned in Q2 2021. The shutdown at our Elkview Operations to complete the plant expansion is also progressing well and we expect completion in mid-April. The Elkview plant is being expanded from a capacity of 7 million tonnes to 9 million tonnes, which will enable us to replace higher cost production from our Cardinal River Mine, which produced 1.4 million tonnes in 2019, with lower cost production from Elkview when Cardinal River closes later this year. Taking into account both the cost savings and the higher average pricing for Elkview coal, assuming US$150 benchmark coal pricing and current exchange rates, this should translate to an annual $110 million increase in EBITDA.

The ongoing impacts of the COVID-19 pandemic have the potential to affect both cost and schedule for these projects, and although impacts to date have not been material, we continue to monitor progress closely given the level of uncertainty.

As previously announced, construction at our Quebrada Blanca Phase 2 (QB2) project was temporarily suspended on March 18. All non-essential employees have been safely demobilized. At this time, construction remains suspended.

COVID-19 Response

Teck has implemented extensive preventative measures across all offices and operations in order to safeguard the health of our employees and local communities, while continuing to operate safely and responsibly maintain employment and economic activity. These measures include enhanced cleaning and disinfecting protocols, eliminating group meetings, reducing occupancy on crew buses, screening contractors and visitors, promoting preventative measures like hand washing, requiring employees returning from international travel or showing symptoms to self-isolate, and implementing remote work where possible.

As part of our focus on ensuring the health and safety of our employees and communities, we have also implemented a temporary slowdown of operations and reduction of crews by up to 50% of regular levels at our steelmaking coal and Highland Valley Copper operations. These measures commenced on March 25 and will be in place for an initial two week period, after which we will re-evaluate in light of the evolving situation. All employees available for work will continue to be paid as normal during the initial two-week period.

COVID-19 Production Impacts

Impacts from COVID-19 will vary by operation, but production will continue at sites on a reduced basis.

While the reductions at our steelmaking coal operations will vary by mine, total production is expected to be reduced on average to approximately 80% to 85% of normal levels during the initial two week period. During this period historically high mine site clean coal inventories are expected to be drawn down to support sales. At Highland Valley Copper, crew reductions are expected to reduce production to 80% to 85% of normal levels for the initial two week period.

At our Trail Operations we have temporarily reduced the number of employees on site by one third while continuing to operate at planned production levels. At Red Dog, production remains at planned levels despite the significant travel restrictions and modified schedules required to maintain safe operations due to the fly-in fly-out nature of the operation. In Peru, our Antamina mine continues to operate at full production levels with less than half of the normal workforce. At Carmen de Andacollo in Chile, full production has also been maintained to date with reduced workforce levels.

At our QB2 project, after the initial two-week suspension, project construction activities remain on hold. It is not currently possible to predict when construction activities will be re-started. For more information on the current status of QB2 please refer to our press release titled “Teck Announces Updated QB2 Capital Estimate” issued March 31, 2020.

We are continuing to work with our unions and affected communities and are following the guidance of government and public health authorities, and will adapt our response as necessary as this situation continues to evolve.

2020 Guidance

We have outlined above the immediate impact of these measures on expected production levels at our operations. We are still assessing longer term response actions, and our ability to maintain operations at current levels, or potentially to increase staffing levels and production. COVID-19 has the potential to affect both our customers and certain of our suppliers, and we are closely monitoring potential impacts on demand for our products, as well as our supply chain. Our operating plans will depend in part on regulatory restrictions that may affect our business, as well as the progress of the pandemic generally, and the extent of additional measures, if any, required to protect the health and safety of employees. The actual degree and duration of production slowdowns and/or staff reductions and related costs is unknown at this time. Given the high degree of uncertainty associated with the current COVID-19 situation we are suspending our 2020 guidance. We will provide a further update when we report our Q1 2020 financial results.

Forward looking statements

This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario) (together referred to a “forward-looking statements”). Forward-looking statements can be identified by the use of words such as “estimate”, “expects”, “intends”, “is expected”, “potential” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would”, “might” or “will” be taken, occur, or be achieved. The forward-looking statements in this news release include statements regarding: complete of construction and commissioning of the Neptune facility upgrade, the completion of the Elkview plant expansion and the operation of the Elkview plant following the closure of the Cardinal River Mine; the potential impacts of COVID -19 on the cost and schedule for those projects; operating restrictions at our steelmaking coal and Highland Valley operations and the associated impacts on production. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding: there being no material and negative impact to the various contractors, suppliers and subcontractors for the sites and projects relating to COVID-19 or otherwise; there being no new regulatory or other restriction affecting our ability to continue operations or construction, whether associated with COVID-19 or otherwise; timely receipt of permits and other regulatory approvals; construction progress and timing of restart of full construction activities; availability of labour; and performance by contractors, subcontractors and suppliers.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results and performance to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to: changes in general economic conditions; labour disruptions; unanticipated permitting or construction issues, or suspension, withdrawal or lack of availability of permits and authorizations; unanticipated factors affecting construction plans and budget including supplier, transportation or logistics issues; adverse weather or natural disaster; community or social unrest; disruption of financial markets; additional measures imposed by regulatory authorities to restrict operating activities; measures imposed or undertaken by suppliers, contractors or subcontractors in response to COVID-19 that might otherwise directly or indirectly affect our operations or projects; and additional measures that we may be required to take to protect the health and safety of our employees.

About Teck

Teck Media Contact:

        Chris Stannell

          Public Relations Manager

          604.699.4368

chris.stannell@teck.com

Teck Investor Contact:

          Fraser Phillips

          Senior Vice President, Investor Relations and Strategic Analysis

          604.699.4621

          fraser.phillips@teck.com

Teck Resources Ltd 6-K, filed Apr 1, 2020

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