I am still trying to absorb the fact that Teck Resources sold their remaining interest in the Waneta Dam.
I worked at Teck Trail for almost 42 years and went to many “state of the union” meetings. The fact was always, always driven home to us that despite the fact that Trail Ops was 400 miles from tidewater we were always a viable business because we had our own power source.
Other than China we had at one time the lowest costs per tonne of zinc in the world because we had our own power.
I do remember in the 90’s when zinc was at .33 cents per pound that Trail was able to remain in business because we could sell excess power to the US.
Six years ago I had a conversation with the then general manager of Trail and was told at that time Trail Ops transportation costs were $100 million a year, raw materials in finished product out. I would guess they are somewhat higher now perhaps maybe $110 million.
Teck Trail will now buy its power for $75 million plus $100 million or so for transportation and now we get the picture.
This is now where it will get interesting.
We now have a guy by the name of Andrew Weaver that right now is the most powerful politician in Canada. He is all about carbon pricing as in doubling it. I urge you all to look this guy up on the Internet.
Does everyone now understand the connection with an increase in carbon taxes, the effects it will have on your own life like gas for your car, truck, natural gas to heat your house and most importantly Teck Trail’s operating costs.
Also my friends at Celgar, Mr.Weaver has you in his sights as well
Teck Trail management has stated that it is “business as usual,” well folks it will never ever again be business as usual.
A former 480 president once said “that smelter and all that goes with it belongs to us, Norman Keevil might own it but it belongs to us.”