Teck Cominco Upgrades Trail Metallurgical Complex and Hydroelectric Power Plant

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). Teck Cominco Limited's (TSE:TEK) (Vancouver, British Columbia) 100 year old Trail Lead and Zinc Smelter typically has an annual capital budget running anywhere between $20-60 million (Canadian). In 2000 the company spent $52 million. In 2001 the company spent $32 million and this year and next they plan to spend about $20 million.

The company is in the midst of a $41 million improvement and turbine life extension program at its hydroelectric power plant and dam, which supplies electricity to the Trail metallurgical operations. Aquila Network Canada (Calgary, Alberta), a subsidiary of Aquila, Incorporated (NYSE:ILA) (Kansas City, Missouri), is the operator of Teck Cominco's 375MW Waneta Hydroelectric Dam located on the Pend Oreille River in British Columbia. Aquila is wrapping up installation of a new $14 million GE turbine and runner system at the dam. Additional runners will be replaced over the next two years. The company will also be building a 16kva electrical substation and a transmission line to support electricity transport from the hydroelectric plant to the Trail complex.

In the metallurgical plant, the company plans about $20 million in capital improvements for 2003. Projects include a $5 million electrical substation at the metallurgical plant. Other work includes furnace repairs, filter replacements, pump replacements, and overhead crane work. Most of the buildings on the site are 40-60 years old and require repairs. The metallurgical plant will also be undergoing an upgrade of its 1920-30's era electrical infrastructure over the next few years.

The Trail Complex is known as the world's largest fully-integrated zinc and lead smelting and refining complex and is also a significant producer of silver, gold, indium, germanium, bismuth, and copper products, including copper sulphate and copper arsenate. The majority of the 375MW produced by the Waneta hydroelectric power plant are used at the complex. The remainder is sold to the open market.