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businessmen from Regina, through Canadian Devonian Petroleums, had discovered the Steelman oil field. In a series of rapid moves the Temagami interests acquired control of Teck-Hughes and Lamaque, which in turn acquired Canadian Devonian and merged with it to form Teck Corporation. The old Teck evolved into a new Teck. 

For a period, Teck’s income was largely from oil and it explored for oil as well as metals, the latter generally in partnership with a loosely connected group of mining companies known as the Keevil Mining Group. These included Temagami; Silverfields, a new silver producer at Cobalt; and several members of the Mattagami Syndicate that had become part of the group. By 1970 it was decided that our objective of building a strong, ongoing mining company would be enhanced if we consolidated the various interrelated group companies into a single, focused growth vehicle. 

Teck Corporation, as the largest company in the group, became that vehicle. 

As the brief timeline on the inside front cover of this report indicates, the revitalized Teck did embark upon an aggressive program of new mine development, often in joint ventures with other companies. This started with the building of three new mines and a copper smelter in a four-year period and, over the next 18 years after the consolidation it participated in 10 new mines, a feat not many companies have accomplished. 

In the process Teck developed mines with products as diverse as zinc, niobium, copper, molybdenum and metallurgical coal, before eventually returning to gold with the David Bell mine at Hemlo. 

While the thrust of the company remained as a mine builder, in the course of time it acquired control of Cominco, participating with it in new zinc and copper mines and in the consolidation of the Highland Valley copper camp in British Columbia before eventually acquiring the balance of that company in 2001. 

Teck also expanded its coal operations into southern B.C., eventually consolidating its Elkview mine with other coal mines in the area to form the Elk Valley Coal Partnership, now wholly-owned and the second largest seaborne metallurgical coal producer in the world. Augmenting this with the joint development of the Antamina copper-zinc mine in Peru, copper operations in Chile, and a return to the oil business through new mining ventures in the Alberta oil sands, Teck has grown into the largest diversified mining company in Canada, surpassing or surviving a number of older mining companies which at one time were much stronger or larger. 

It has done this by emphasizing the three things we believe are key to any successful mining company: the continuous need to sustain and augment our ore reserves; the need to maintain a solid financial position to enable us to withstand economic vicissitudes and to expand those operating assets when appropriate; and the importance of developing strong engineering and support teams that are able to build and operate efficiently and sustainably. Long-life reserves and diversity have been objectives for us ever since the new Teck began with limited mine life in the 1970s. This continues to be a company focus, and the importance of financial strength has never been clearer than it is today. 

But in the final analysis, it is people who create successful enterprises — those who find, build and manage the mines and companies — and all of the people in Teck who have done this at various times as the company evolved over 100 years deserve credit for what they have accomplished, as well as the legacy they have left for those who will continue as the builders of the future Teck. 

Finally, on a personal note, Brian Aune has decided for his own reasons not to stand for re-election to the Board of Directors at the upcoming annual meeting. Brian has been a strong director of Teck for many years, having joined us after retiring from the investment-banking firm he had built when it was acquired by the Bank of Montreal. For Brian, good governance was a given, and his efforts were always aimed at helping us make sound business decisions. 

He served Teck extremely well and will be missed, although he will continue to be a shareholder and I anticipate a lot of calls from him offering sound advice as time goes on. 

During the last year we were fortunate to welcome Ed Dowling as a new director. Ed is an engineer with a PhD in metallurgy who brings a wealth of mining business experience with several companies that have been amongst the leaders in the world industry. 

On behalf of the Board, and with thanks for your continued support, 

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