The company’s operating profit before depreciation for the year was C$3.7 billion compared with C$2.8 billion in 2008. Operating profit before depreciation in the fourth quarter was about C$1 billion compared with C$347 million a year ago.

Net earnings for the year were the company’s second highest ever at C$1.8 billion compared with C$659 million last year. Net earnings in the quarter were $411 million compared with a net loss of C$607 million in the fourth quarter of 2008.

Teck recorded record revenues in the full year and the fourth quarter of 2009 of C$7.7 billion and C$2.2 billion, respectively.

The sale of one-third of Teck’s interest in the Waneta hydroelectric dam in southern British Columbia for C$825 million is scheduled to close in February. Upon completion, the company’s total debt will be down to C$6.7 billion from the C$13.4 billion at the time it acquired the Fording coal assets. The company’s term loan will be US$1.14 billion and its cash balance is expected to be about C$1.3 billion. With amendments made to the term loan, the remaining scheduled term loan payments are expected to be aboutUS$440 million in 2010, US$420 million in 2011 and US$280 million in 2012.

Teck President and CEO Don Lindsay said, “Our record revenues this year reflected strong performance across the company, including record production of copper at Quebrada Blanca and zinc at both Red Dog and Antamina. Including the application of the proceeds from the sale of an interest in the Waneta Dam of C$825 million, we will have reduced our total debt by C$6.7 billion since we acquired the Fording coal assets in October, 2008. With our current cash balance of C$1.3 billion, our net-debt to net-debt-plus-equity ratio is then expected to be approximately 26 percent.”

Teck said the markets in which it sells it products have seen significant improvements from a year ago. Base metal prices increased significantly and the miner has seen improvement in customer demand. Steel industry utilization rates have continued to improve resulting in an increased demand for coal, particularly in Asia, and spot prices for metallurgical coal have been higher than annual contract prices. While general economic conditions have improved and stability appears to be returning to financial and commodity markets, some uncertainty concerning the short and medium term global economic outlook persists. The company said it will continue to closely monitor these developments and their effect on its business.

Teck’s cash flow from operations was C$697 million in the fourth quarter compared with C$589 million a year ago. Cash flow increased from a year ago due to higher contributions from our copper and zinc operations as a result of higher base metal prices and increased sales volumes of zinc and coal. This was partly offset by a decline in coal revenues due to lower coal prices and by interest payments of about $260 million in the quarter. Cash flow from operations in the fourth quarter of 2008 included strong cash flows from our coal operations, but also included negative copper and zinc settlement adjustments of C$255 million in the quarter.

Teck said operating profit from its coal business unit, before depreciation and pricing adjustments, was C$372 million in the fourth quarter compared with C$516 million last year. The reduction was primarily due to significantly lower realized coal prices, which averaged C$151 (US$139) per metric ton in the quarter compared with C$285 (US$247) per metric ton 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 and the effect of a stronger Canadian dollar.

The company said coal sales volumes of 5.4 million metric tons in the fourth quarter, which were constrained by clean coal production levels and delayed ship loading due to severe weather, reflect strong demand in China for seaborne coking coal and increased deliveries to its traditional contract customers. This compares with sales of 4.7 million metric tons in the fourth quarter of 2008 when our customers deferred coal deliveries in response to lower steel demand.

Operating profit from Teck’s zinc business unit, before depreciation and pricing adjustments, was C$205 million in the fourth quarter compared with C$62 million a year ago due to significantly higher zinc and lead prices and higher concentrate sales volumes. After depreciation and pricing adjustments, the operating profit from the company’s zinc business unit was C$195 million compared with an operating loss of C$82 million last year.

Red Dog’s operating profit before pricing adjustments was C$172 million in the fourth quarter compared with C$21 million in the same period last year due to higher zinc and lead prices as well as to zinc sales volumes which were 25 percent higher than a year ago. The higher sales volumes were due to increased production levels and timing of shipments. Positive pricing adjustments were C$28 million in the fourth quarter compared with C$92 million of negative pricing adjustments in the fourth quarter of 2008.

The mine set a new annual record for contained metal production in 2009 as a result of a number of site-driven performance improvement initiatives. Metric tons milled at Red Dog in the fourth quarter increased by 20 percent compared with a year ago, as mill throughput last year had been negatively affected by a series of equipment failures. Ore grades were higher in the fourth quarter of 2009.

Red Dog shipped 1.02 million metric tons of zinc concentrate and 220,000 metric tons of lead concentrate during the 2009 shipping season. This compares with shipments of 920,000 metric tons of zinc and 247,000 metric of lead concentrate for the 2008 shipping season.

Metals contained in concentrate available for sale from Jan. 1, 2010 to the beginning of the 2010 shipping season are about 227,000 metric tons of contained zinc in concentrate and 3,000 metric tons of contained lead in concentrate. Contained zinc sales volumes in the first quarter of 2010 are estimated to be around 110,000 metric tons, the 3,000 metric tons of contained lead available for sale is expected to be sold in the second quarter of 2010.

On Dec. 15, the State of Alaska issued a certification of Red Dog’s National Pollutant Discharge Elimination System Permit, the mine’s water discharge permit. The NPDES Permit is issued by the US Environmental Protection Agency and certified by the State 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, the next deposit to be developed at Red Dog.

On January 8, 2010, the EPA approved the Supplemental Environmental Impact Statement for the Aqqaluk deposit and, simultaneously, issued a renewal of the NPDES Permit. The permit becomes effective on March 1, 2010 following the expiration of a 30 day appeal period on Feb. 17, 2010. The issuance of the permit may be appealed by any party who commented on the draft SEIS.

Other State and local permits required for the development of Aqqaluk were received in December. The appeal period for those permits has expired. A wetlands permit from the Army Corp of Engineers is the only outstanding agency authorization. This permit is undergoing final agency review. There is no specific period established for an appeal of this permit.

Teck said an appeal of the SEIS, NPDES or wetlands permit could result in a stay and delay access to the Aqqaluk deposit. The company’s 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. If a permit is delayed beyond the first quarter of 2010, Teck’s transition plan will be affected and production at Red Dog could be curtailed in October.

Teck and its partner, NANA Regional Native Corp., have been working with public agencies and with entities that submitted comments to address concerns they raised. While the partners believe the regulatory process has been appropriate and robust, there can be no assurance that an appeal will not delay the development of Aqqaluk, Teck said. “We are developing contingency plans to minimize the potential disruption to the operation from an appeal,” the major added.