Teck CEO Price Navigates Mining's Sustainability Challenge
In today’s mining industry, few voices carry as much weight as that of Jonathan Price, President and CEO of Teck Resources, one of Canada's largest diversified mining companies.
Teck has long been at the forefront of industry trends and innovations, and under Price's leadership, it is charting a course through the complex interplay of ESG concerns, critical mineral demand and technological transformation.
Price's perspective on the industry's challenges and opportunities is both pragmatic and forward-thinking. "We've seen a convergence of both the issue and the opportunity over the last 12 months or more", he says, speaking in an EY video interview.
This convergence, he goes on to say, centres on dual pressures facing the mining sector: the urgent need for critical minerals to support global decarbonisation efforts and the increasingly stringent environmental and social expectations surrounding mineral extraction.
"We're being asked to do more than we've ever done before in terms of the rate of mining and the rate of extraction, but of course that needs to be done in a more responsible way, creating less impact than it's ever been done before", Price explains.
Price has been able to negotiate the huge challenges of his role by drawing on his deep and long experience.
His career spans more than two decades in the mining and finance sectors. He began at ABN AMRO Bank as an Associate in Global Clients, focusing on metals and mining.
In 2006, Price joined BHP, where he spent 14 years in various roles, starting in Business Development, before moving to Trading Book Manager in Singapore. As Head of Business Development for BHP Iron Ore in Perth, he led significant commercial negotiations.
He then transitioned to Investor Relations in London before becoming VP Finance in Singapore. His final role at BHP was Chief Transformation Officer, where he led global transformation programmes.
In October 2020, Price joined Teck Resources as Chief Financial Officer. He was appointed CEO Elect in July 2022, becoming CEO two months later. In November 2023, he assumed the role of President and Chief Executive Officer at Teck Resources Limited, a position he currently holds in Vancouver, British Columbia.
As for the weighty sustainability challenges of his current role, Price stresses that, for Teck, ESG considerations are “not merely a compliance issue but a fundamental aspect of our operational strategy”. He adds: "Having a strong ESG record is essential to be able to build and operate mines. It is fundamental to what we do".
He goes further, saying companies without a strong track record in responsible mining "shouldn't really have access to these resources".
This commitment to ESG is exemplified in Teck's QB2 project in Chile's Atacama Desert. The project incorporates a full-scale desalination plant, 100% renewable power, and 22 agreements with local communities and indigenous groups. Price views this approach as a competitive advantage, believing that "opportunities for new projects and development of new projects will go increasingly to those of us in the industry who do take ESG very seriously".
Beyond environmental considerations, Price emphasises the importance of community relations and local expertise. "You need to make sure you are engaging with those communities,” he says. “You need to make sure you are really listening and understanding what's important to those communities.”.
This localised approach extends to Teck's operations globally, from Chile to Alaska, where each site presents unique challenges and opportunities.
Price is also keenly aware of the industry's role in addressing global biodiversity loss. Teck has committed to working towards a nature-positive future by 2030, pledging to "conserve and reclaim at least three hectares for every one hectare of land that we affect through mining".
This initiative aligns with broader industry efforts, with Price revealing that the International Council on Mining and Metals (ICMM) will soon announce similar commitments across its membership.
On the critical minerals front, Price sees a significant shift in market dynamics. "There's a huge opportunity there of course for capital markets because the demand outlook for some of the metals very closely linked to electrification is extremely compelling", he observes. However, he also notes the challenge of underinvestment in the sector over the past decade, which has left many companies scrambling to meet growing demand.
But he says Teck is well-positioned in this regard.
"We've maintained significant exploration programmes over many decades and we've done that through cycles", Price explains. "We actually now have a significant portfolio of projects in our portfolio that are capable of execution".
Digital transformation is another key focus for Teck under Price's leadership. The company has embraced advanced analytics and machine learning to improve productivity, safety, and sustainability across its operations.
"We are generating a huge amount of data, which we're applying advanced analytics and machine learning to actively day-to-day around these sites", he notes.
Such efforts have yielded tangible results, including up to 10% increases in truck productivity and optimised material processing.
Looking to the future, Price sees a shift in business models within the mining industry, away from diversification and towards more-focused portfolios, particularly in critical minerals and electrification-related commodities.
"If you can create portfolios that are focused around those thematics, it makes it much easier for the generalist investor", he explains.
As the mining industry navigates these complex challenges and opportunities, Price remains optimistic about Teck's position and the sector's future.
"We're very excited about this focus that we will have now on base metals and copper in particular, and this opportunity to continue to provide materials that the world is going to need while doing that in an increasingly responsible manner", he concludes. "The future looks very bright for us and for the industry as a whole".
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