Oct.15,16 2007

Trail OperationsMike Agg

2

Trail Operations

Trail Operations:

• 295,000 tonnes of zinc• 85,000+ tonnes of lead

Waneta Dam:•475 MW Capacity •Approx 2,800 GW.h annually

3

Trail Operations

0

100

200

300

400

2002 2003 2004 2005 2006

Metals Power

Operating ProfitMillions $

Power

Zinc

Sulphur Products

Misc.Specialty

Metals

Precious Metals

Lead

Revenue by Major Product

61%8%

17%

5%

4%3%

2%

Flexible productionDiversified revenueDiversified Operating Profit

4

ZincOperations

LeadOperations

GasHandling

Zinc FumeResidues

ZincIndium

GermaniumCadmium

LeadSilverGold

Co-Products

Sulphuric AcidSulphur Dioxide

Sulphate Fertilizer

Trail Operations Flowsheet

One of the largest integrated zinc/lead smelter complexes in the worldCapability to process wide range of feed materials19 processes20 products and growing

5

Production PerformanceImprovements

ZINC

130,000160,000190,000220,000250,000280,000310,000

2001 2002 2003 2004 2005 2006

Tonn

es

INDIUM

0

10,000

20,00030,000

40,000

50,000

60,000

2001 2002 2003 2004 2005 2006

Kg

GERMANIUM

05,000

10,00015,00020,00025,00030,00035,000

2001 2002 2003 2004 2005 2006

Kg

• Record refined zinc production in 2006

• Steady improvement in indium production

• Improved germanium production through:

• Increased inputs

• Recovery improvements

6

Labour Productivity Improvements1999 – 2006 (man hr/t Zn)

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

1999 2000 2001 2002 2003 2004 2005 2006

Significant productivity improvement through:

• Business rationalization

• Maintenance improvements

• Improved reliability

• Process

• Equipment

Top Quartile labour productivity

Source: Brook Hunt, Zinc Smelter Study

7

Trail Operations - 2004Cash Conversion Cost (c/lb of Zn)

Teck Cominco: Trail, BC

Cumulative Total Slab Zinc (kt)Source: Brook Hunt Zinc Smelter Study

0

10

20

30

40

50

0 2000 4000 6000 8000

• #2 position world wide

• Debottlenecking –continuous improvements

8

Business Development Trail

• Electronics Recycling

• Alternative Feeds

• Slags

• Residues

• Advanced Materials

• Low Alpha Lead

• Germanium

9

Waneta Dam and Reservoir

71 Line Pend

d’Oreille River

49th Parallel

Columbia River

Power Revenue

0

20

40

60

80

100

120

140

2002 2003 2004 2005 2006

Mill

ions

$

Generation Capacity

300

350

400

450

500

1995

1996

1997

1998

1999

2001

2002

2003

2004

2005

2006

2007

MW

Uni

t 3 Uni

t 1 Uni

t 2 Uni

t 4Built in 1954

475 MW Capacity

Secure low cost power

Transmission connection into US

10

Teck Cominco Energy AssetsInterconnections – Trail and Area

Lower Arrow Lake

Kootenay River

3 1 2

4

FortisBCPower Plants

KeenleysideDam

Col

umbi

a R

iver

Pend d’OreilleRiver

7 Mile Dam

Trail Smelter (210 MW

load)

Selkirk Substatio

n

NelwaySubstatio

n

Kootenay Lake

Kootenay

River

CANADA

USAUSA Grid

Boundary Dam

Grand Coulee Dam

Reservoir

230kV Lines

500kV

Line

4-60kV Lines

230 kV Lines (TCML 150 MW

Reserved Capacity)

230kV Line

500kV

Line

500kV Line

Crawford Bay

Kimberley Sullivan

Mine230kV Lines

N

S

EW

TCML

BC Hydro

FortisBC

CPC

161kV Line

500kV Line

TCML 71 Line 230 kV

– 15 miles 370 MW

KCP

Brilliant Dam &

Substation

Waneta Power

Plant (450 MW)

Boundary Substatio

n

• Security of supply through Canal Plant Agreement

• Supply in excess of metallurgical needs –1/3 sold

• Highly integrated with provincial electrical infrastructure

11

Trail PowerWaneta Upgrade Projects

Waneta Hydro Station Construction

Unit Life Extension & UpgradeInvestment of over $50 million Four generating units upgraded#4 Unit completed in January 2007Extends life of each unit for another 40 – 50 yearsOverall capacity increased by 100 MW.

Waneta Hydro Station Investment of $40 millionReplacement of obsolete switching stationScheduled completion November 2007Station Services completed in 2008

Waneta Unit 4 Turbine