2007 Sustainability Report

Economic Contributions

As outlined in our Charter of Corporate Responsibility, we are committed to creating “value for our stakeholders, while continually improving our performance as a good corporate citizen.” Our Code of Sustainable Conduct also outlines a number of guiding principles which govern our sustainable economic performance, including:

Obeying the law and conducting business in accordance with Teck’s Code of Business Ethics
Supporting local communities and their sustainability through measures such as development programs, locally sourcing goods and services and employing area residents
Conducting regular audits to ensure compliance with this Code

Economic Performance

In 2007, we achieved net earnings of $1.6 billion, the second highest in the company’s history following our all-time record set the previous year. More information on our financial performance is available in our 2007 Annual Report and our 2007 financial statements.

The table below is intended to provide information on how we create wealth for stakeholders through direct economic value generated, distributed and retained as defined by GRI. We contribute to our stakeholders’ wealth and prosperity at local, national and global levels via tax and royalty payments, direct and indirect employment, and the creation of broader economic opportunities.

Table of economic value generated and distributed in 2007 as required by GRI (in $ million)

Economic Value Generated

Revenue ⁽¹⁾ $6,371

Economic Value Distributed

Operating costs ⁽²⁾ $3,546

Payments to providers of capital $426 (dividends)
$90 (interest)

Taxes ⁽³⁾ $1,283

Community Investments $17

Total economic value distributed $5,362

Economic Value Retained

Economic value generated minus economic value distributed $1,009

(1) Per income statement (fiscal year).
(2) Per income statement (fiscal year). Operating costs include operating expenses at our mining and processing operations and our general and administration, exploration, and research and development expenses. Employee wages and benefits are included in the total.
(3) This figure reflects income and resource taxes paid. Other taxes (property, payroll, royalty, etc.) are not included, but some taxes may be reflected in sites’ operating costs. Breaking this figure down to reflect all components is beyond the scope of this report.

Taxes paid by country (in $ million)⁽¹⁾

Canadian taxes:	$725
US taxes:	$274
Peruvian taxes:	$253 (Antamina)
Chilean taxes:	$31 (Aur-QB/CdA)
Total	$1,283
(1) These figures reflect income and resource taxes paid. Other taxes (property, payroll, royalty, etc.) are not included, but some taxes may be reflected in sites’ operating costs. Breaking this figure down to reflect all components is beyond the scope of this report.

Economic Value Generated
Revenue ⁽¹⁾	$6,371
Economic Value Distributed
Operating costs ⁽²⁾	$3,546
Payments to providers of capital	$426 (dividends) $90 (interest)
Taxes ⁽³⁾	$1,283
Community Investments	$17
Total economic value distributed	$5,362
Economic Value Retained
Economic value generated minus economic value distributed	$1,009
(1) Per income statement (fiscal year). (2) Per income statement (fiscal year). Operating costs include operating expenses at our mining and processing operations and our general and administration, exploration, and research and development expenses. Employee wages and benefits are included in the total. (3) This figure reflects income and resource taxes paid. Other taxes (property, payroll, royalty, etc.) are not included, but some taxes may be reflected in sites’ operating costs. Breaking this figure down to reflect all components is beyond the scope of this report.

Economic Contributions

Economic Performance

Table of economic value generated and distributed in 2007 as required by GRI (in $ million)

Taxes paid by country (in $ million) (1)

Taxes paid by country (in $ million)⁽¹⁾