Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-13184 |
Entity Registrant Name | TECK RESOURCES LIMITED |
Entity Incorporation, State or Country Code | Z4 |
Entity Primary SIC Number | 1400 |
Entity Address, Address Line One | Suite 3300 – 550 Burrard Street |
Entity Address, City or Town | Vancouver |
Entity Address, State or Province | BC |
Entity Address, Postal Zip Code | V6C 0B3 |
Entity Address, Country | CA |
City Area Code | 604 |
Local Phone Number | 699-4000 |
Title of 12(b) Security | Class B subordinate voting shares |
Trading Symbol | TECK |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Amendment Flag | false |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Central Index Key | 0000886986 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 28 Liberty St. |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10005 |
City Area Code | 212 |
Local Phone Number | 894-8940 |
Contact Personnel Name | CT Corporation System |
Class A Common Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 7,765,503 |
Class B Subordinate Voting Shares | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 526,448,506 |
3.750% Notes Due 2023 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
3.900% Notes due 2030 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
6.125% Notes Due 2035 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
6.000% Notes Due 2040 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
6.25% Notes Due 2041 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
5.200% Notes Due 2042 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
5.400% Notes Due 2043 | |
Document Information [Line Items] | |
Security Reporting Obligation | 15(d) |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Vancouver, Canada |
Auditor Firm ID | 271 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - CAD ($) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Profit or loss [abstract] | ||
Revenue (Note 5) | $ 13,481 | $ 8,948 |
Cost of sales | (8,400) | (7,615) |
Gross profit | 5,081 | 1,333 |
Other operating income (expenses) | ||
General and administration | (174) | (132) |
Exploration | (65) | (45) |
Research and innovation | (129) | (97) |
Impairment reversal (asset impairment) (Note 7(a)) | 215 | (1,244) |
Other operating income (expense) (Note 8) | (78) | (725) |
Profit (loss) from operations | 4,850 | (910) |
Finance income (Note 9) | 5 | 10 |
Finance expense (Note 9) | (215) | (278) |
Non-operating income (expense) (Note 10) | (105) | 43 |
Share of loss of associates and joint ventures (Note 14) | (3) | (1) |
Profit (loss) before taxes | 4,532 | (1,136) |
Recovery of (provision for) income taxes (Note 21(a)) | (1,617) | 192 |
Profit (loss) for the year | 2,915 | (944) |
Profit (loss) attributable to: | ||
Profit (loss) attributable to Shareholders of the company | 2,868 | (864) |
Non-controlling interests | $ 47 | $ (80) |
Earnings (loss) per share (Note 24(f)) | ||
Basic (in dollars per share) | $ 5.39 | $ (1.62) |
Diluted (in dollars per share) | $ 5.31 | $ (1.62) |
Weighted average shares outstanding (millions) (in shares) | 532,340 | 534,378 |
Weighted average diluted shares outstanding (millions) (in shares) | 540,271 | 534,378 |
Number of shares outstanding (in shares) | 534,200 | 531,100 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | ||
Profit (loss) for the year | $ 2,915 | $ (944) |
Items that may be reclassified to profit (loss) | ||
Currency translation differences (net of taxes of $(2) and $(17)) | (43) | (100) |
Change in fair value of debt securities (net of taxes of $nil and $nil) | (2) | 0 |
Items that may be reclassified to profit | (45) | (100) |
Items that will not be reclassified to profit (loss) | ||
Change in fair value of marketable equity securities (net of taxes of $1 and $(3)) | (4) | 24 |
Remeasurements of retirement benefit plans (net of taxes of $(91) and $29) | 171 | (50) |
Items that will not be reclassified to profit | 167 | (26) |
Total other comprehensive income (loss) for the year | 122 | (126) |
Total comprehensive income (loss) for the year | 3,037 | (1,070) |
Total other comprehensive income (loss) attributable to: | ||
Shareholders of the company | 126 | (112) |
Non-controlling interests | (4) | (14) |
Total other comprehensive income (loss) for the year | 122 | (126) |
Total comprehensive income (loss) attributable to: | ||
Shareholders of the company | 2,994 | (976) |
Non-controlling interests | 43 | (94) |
Total comprehensive income (loss) for the year | $ 3,037 | $ (1,070) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of comprehensive income [abstract] | ||
Currency translation differences, taxes | $ (2) | $ (17) |
Change in fair value of available-for-sale financial instruments, taxes | 0 | 0 |
Change in fair value of marketable equity securities, taxes | 1 | (3) |
Remeasurements of retirement benefit plans, tax | $ (91) | $ 29 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | ||
Profit (loss) for the year | $ 2,915 | $ (944) |
Depreciation and amortization | 1,583 | 1,510 |
Provision for (recovery of) income taxes | 1,617 | (192) |
(Impairment reversal) asset impairment | (215) | 1,244 |
Gain on sale of investments and assets | (4) | (75) |
Loss on debt redemption or purchase | 0 | 11 |
Net finance expense | 210 | 268 |
Income taxes paid | (849) | (233) |
Remeasurement of decommissioning and restoration provisions for closed operations | 35 | 169 |
QB2 variable consideration to IMSA and ENAMI | 141 | (56) |
Other | 179 | 102 |
Net change in non-cash working capital items | (874) | (241) |
Net cash from operating activities | 4,738 | 1,563 |
Investing activities | ||
Expenditures on property, plant and equipment | (4,046) | (3,129) |
Capitalized production stripping costs | (667) | (499) |
Expenditures on investments and other assets | (160) | (190) |
Proceeds from investments and assets | 54 | 146 |
Net cash used in investing activities | (4,819) | (3,672) |
Financing activities | ||
Proceeds from debt | 1,639 | 2,426 |
Revolving credit facilities | (335) | 363 |
Redemption, purchase or repayment of debt | (155) | (457) |
Repayment of lease liabilities | (139) | (163) |
QB2 advances from SMM/SC | 326 | 41 |
Interest and finance charges paid | (400) | (363) |
Issuance of Class B subordinate voting shares | 50 | 1 |
Purchase and cancellation of Class B subordinate voting shares | 0 | (207) |
Dividends paid | (106) | (106) |
Contributions from non-controlling interests | 113 | 2 |
Distributions to non-controlling interests | (57) | (9) |
Other liabilities | 120 | 0 |
Net cash used in financing activities | 1,056 | 1,528 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 5 |
Net increase (decrease) in cash and cash equivalents | 977 | (576) |
Cash and cash equivalents at beginning of year | 450 | 1,026 |
Cash and cash equivalents at end of year | $ 1,427 | $ 450 |
Consolidated Balance Sheets
Consolidated Balance Sheets - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents (Note 11) | $ 1,427 | $ 450 |
Current income taxes receivable | 6 | 14 |
Trade and settlement receivables | 1,981 | 1,312 |
Inventories (Note 12) | 2,390 | 1,872 |
Prepaids and other current assets | 299 | 352 |
Total current assets | 6,103 | 4,000 |
Financial and other assets (Note 13) | 1,571 | 1,269 |
Investments in associates and joint ventures (Note 14) | 1,060 | 1,067 |
Property, plant and equipment (Note 15) | 37,382 | 33,578 |
Deferred income tax assets (Note 21(b)) | 161 | 271 |
Goodwill (Note 16) | 1,091 | 1,093 |
TOTAL ASSETS | 47,368 | 41,278 |
Current liabilities | ||
Trade accounts payable and other liabilities (Note 17) | 3,255 | 2,909 |
Current portion of debt (Note 18) | 213 | 115 |
Current portion of lease liabilities (Note 19(c)) | 127 | 119 |
Current income taxes payable | 165 | 102 |
Total current liabilities | 3,760 | 3,245 |
Debt (Note 18) | 7,161 | 6,140 |
Lease liabilities (Note 19(c)) | 567 | 573 |
QB2 advances from SMM/SC (Note 20) | 1,263 | 934 |
Deferred income tax liabilities (Note 21(b)) | 5,973 | 5,383 |
Retirement benefit liabilities (Note 22(a)) | 517 | 564 |
Provisions and other liabilities (Note 23) | 4,354 | 3,731 |
Total liabilities | 23,595 | 20,570 |
Equity | ||
Attributable to shareholders of the company | 23,005 | 20,039 |
Attributable to non-controlling interests (Note 25) | 768 | 669 |
Total equity | 23,773 | 20,708 |
Total equity and liabilities | $ 47,368 | $ 41,278 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Millions | Total | Issued capitalClass A Common Shares | Issued capitalClass B Subordinate Voting Shares | Retained earnings | Contributed surplus | Accumulated other comprehensive income | Non-controlling interests |
Beginning of year at Dec. 31, 2019 | $ 6,323 | $ 14,447 | $ 219 | $ 309 | $ 770 | ||
Issued on exercise of options | 1 | 0 | |||||
Profit (loss) for the year attributable to shareholders of the company | $ (864) | (864) | |||||
Dividends paid (Note 24(g)) | (106) | ||||||
Share repurchases | (190) | (17) | |||||
Remeasurements of retirement benefit plans | 50 | 50 | 50 | ||||
Share option compensation expense (Note 24(c)) | 23 | ||||||
Other comprehensive income (loss) | (112) | (112) | |||||
Profit (loss) for the year attributable to non-controlling interests | (80) | (80) | |||||
Other comprehensive income (loss) attributable to non-controlling interests | (14) | (14) | |||||
Contributions from non-controlling interests | 2 | ||||||
Distributions to non-controlling interests | (9) | ||||||
End of year at Dec. 31, 2020 | 20,708 | $ 6 | 6,134 | 13,410 | 242 | 247 | 669 |
Issued on exercise of options | 67 | (17) | |||||
Profit (loss) for the year attributable to shareholders of the company | 2,868 | 2,868 | |||||
Dividends paid (Note 24(g)) | (106) | ||||||
Share repurchases | 0 | 0 | |||||
Remeasurements of retirement benefit plans | (171) | (171) | (171) | ||||
Share option compensation expense (Note 24(c)) | 28 | ||||||
Other comprehensive income (loss) | 126 | 126 | |||||
Profit (loss) for the year attributable to non-controlling interests | 47 | 47 | |||||
Other comprehensive income (loss) attributable to non-controlling interests | (4) | (4) | |||||
Contributions from non-controlling interests | 113 | ||||||
Distributions to non-controlling interests | (57) | ||||||
End of year at Dec. 31, 2021 | $ 23,773 | $ 6 | $ 6,201 | $ 16,343 | $ 253 | $ 202 | $ 768 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Nature Of Operations [Abstract] | |
Nature of Operations | Nature of OperationsTeck Resources Limited and its subsidiaries (Teck, we, us or our) are engaged in mining and related activities including research, exploration and development, processing, smelting, refining and reclamation. Our major products are copper, zinc, steelmaking coal and blended bitumen. We also produce lead, precious metals, molybdenum, fertilizers and other metals. Metal products are sold as refined metals or concentrates.Teck is a Canadian corporation and our registered office is at Suite 3300, 550 Burrard Street, Vancouver, British Columbia, Canada, V6C 0B3. |
Basis of Preparation and New IF
Basis of Preparation and New IFRS Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Basis of Preparation and New IFRS Pronouncements [Abstract] | |
Basis of Preparation and New IFRS Pronouncements | Basis of Preparation and New IFRS Pronouncements a) Basis of Preparation These annual consolidated financial statements have been prepared by management in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and were approved by the Board of Directors on February 23, 2022. b) New IFRS Pronouncements Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use In May 2020, the IASB issued amendments to IAS 16, Property, Plant and Equipment (IAS 16). The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related costs in profit (loss). An entity is required to apply these amendments for annual reporting periods beginning on or after January 1, 2022. The amendments are applied retrospectively only to items of property, plant and equipment that are available for use after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments. As at December 31, 2021, we have completed our analysis of these amendments and have determined that there will be no retrospective effect on our 2021 financial results on adoption of the amendments. Since the amendments were effective from January 1, 2022, we expect them to have an effect on the accounting related to the sale of products during the commissioning phase of our Quebrada Blanca Phase 2 project (QB2). Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2 In August 2020, the IASB issued amendments to IFRS 9, Financial Instruments (IFRS 9), IAS 39, Financial Instruments: Recognition and Measurement (IAS 39), IFRS 7, Financial Instruments: Disclosures (IFRS 7), IFRS 4, Insurance Contracts (IFRS 4) and IFRS 16, Leases (IFRS 16) as a result of Phase 2 of the IASB’s Interest Rate Benchmark Reform project. The amendments address issues arising in connection with reform of benchmark interest rates, including the replacement of one benchmark rate with an alternative one. The amendments were effective January 1, 2021. For the year ended December 31, 2021, these amendments did not affect our financial statements, as we have not yet transitioned any agreements that are exposed to USD London Interbank Offered Rate (LIBOR) to an alternative benchmark interest rate. Language was included in our sustainability-linked revolving credit facility when we extended its maturity in 2021, which references the Term Secured Overnight Financing Rate (Term SOFR) as the replacement rate for LIBOR. Term SOFR was formally recommended by the Alternative Reference Rates Committee (a committee convened by the U.S. Federal Reserve Board) as the recommended fallback for LIBOR based loans. Term SOFR is expected to be economically equivalent to LIBOR, allowing for use of the practical expedient under IFRS 9. We continue to work with our lenders on the replacement of the affected rates for our other significant financial instruments, which is not expected to result in a significant change in our interest rate risk management strategy or our interest rate risk. Our sustainability-linked revolving credit facility, QB2 project financing facility, Compañía Minera Antamina S.A. (Antamina) loan agreement and QB2 advances from Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (together referred to as SMM/SC) are our most significant financial instruments that are exposed to LIBOR. These financial instruments are based on LIBOR settings that are currently scheduled to cease publication after June 30, 2023. We will continue to monitor developments on alternative benchmark interest rates and we expect to transition to alternative rates as widespread market practice is established. 2. Basis of Preparation and New IFRS Pronouncements (continued) Amendments to IAS 12 – Income Taxes In May 2021, the IASB issued amendments to IAS 12, Income Taxes (IAS 12). The amendments will require companies to recognize deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. The proposed amendments will typically apply to transactions such as leases for the lessee and decommissioning and restoration obligations related to assets in operation. An entity is required to apply these amendments for annual reporting periods beginning on or after January 1, 2023. Early application is permitted. The amendments are applied to transactions that occur on or after the beginning of the earliest comparative period presented. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The significant accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated. Basis of Presentation Our consolidated financial statements include the accounts of Teck and all of its subsidiaries. Our significant operating subsidiaries include Teck Metals Ltd. (TML), Teck Alaska Incorporated (TAK), Teck Highland Valley Copper Partnership (Highland Valley Copper), Teck Coal Partnership (Teck Coal), Compañía Minera Teck Quebrada Blanca S.A. (QBSA or Quebrada Blanca) and Compañía Minera Teck Carmen de Andacollo (Carmen de Andacollo). All subsidiaries are entities that we control, either directly or indirectly. Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when our existing rights give us the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a company’s share capital. All of our intra-group balances and transactions, including unrealized profits and losses arising from intra-group transactions, have been eliminated in full. For subsidiaries that we control but do not own 100% of, the net assets and net profit (loss) attributable to outside shareholders are presented as amounts attributable to non-controlling interests in the consolidated balance sheet and consolidated statements of income (loss) and comprehensive income (loss). Certain of our business activities are conducted through joint arrangements. Our interests in joint operations include Galore Creek Partnership (Galore Creek, 50% share) and Fort Hills Energy L.P. (Fort Hills, 21.3% share), which operate in Canada and Antamina (22.5% share), which operates in Peru. We account for our interests in these joint operations by recording our share of the respective assets, liabilities, revenue, expenses and cash flows. We also have an interest in a joint venture, NuevaUnión SpA (NuevaUnión, 50% share), in Chile that we account for using the equity method (Note 14). All dollar amounts are presented in Canadian dollars unless otherwise specified. Interests in Joint Arrangements A joint arrangement can take the form of a joint venture or joint operation. All joint arrangements involve a contractual arrangement that establishes joint control, which exists only when decisions about the activities that significantly affect the returns of the investee require unanimous consent of the parties sharing control. A joint operation is a joint arrangement in which we have rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement in which we have rights to only the net assets of the arrangement. Joint ventures are accounted for in accordance with the policy “Investments in Associates and Joint Ventures”. Joint operations are accounted for by recognizing our share of the assets, liabilities, revenue, expenses and cash flows of the joint operation in our consolidated financial statements. 3. Summary of Significant Accounting Policies (continued) Investments in Associates and Joint Ventures Investments over which we exercise significant influence but do not control or jointly control are associates. Investments in associates are accounted for using the equity method, except when classified as held for sale. Investments in joint ventures, as determined in accordance with the policy “Interests in Joint Arrangements”, are also accounted for using the equity method. The equity method involves recording the initial investment at cost and subsequently adjusting the carrying value of the investment for our proportionate share of the profit (loss), other comprehensive income (loss) and any other changes in the associate’s or joint venture’s net assets, such as further investments or dividends. Our proportionate share of the associate’s or joint venture’s profit (loss) and other comprehensive income (loss) is based on its most recent financial statements. Adjustments are made to align any inconsistencies between our accounting policies and our associate’s or joint venture’s policies before applying the equity method. Adjustments are also made to account for depreciable assets based on their fair values at the acquisition date of the investment and for any impairment losses recognized by the associate or joint venture. If our share of the associate’s or joint venture’s losses were equal to or exceeded our investment in the associate or joint venture, recognition of further losses would be discontinued. After our interest is reduced to zero, additional losses would be provided for and a liability recognized only to the extent that we have incurred legal or constructive obligations to provide additional funding or to make payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, we resume recognizing our share of those profits only when we have a positive interest in the entity. At each balance sheet date, we consider whether there is objective evidence of impairment in associates and joint ventures. If there is such evidence, we determine the amount of impairment to record, if any, in relation to the associate or joint venture. Foreign Currency Translation The functional currency of each of our subsidiaries and our joint operations, joint ventures and associates is the currency of the primary economic environment in which the entity operates. Transactions in foreign currencies are translated to the functional currency of the entity at the exchange rate in existence at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the period end date exchange rates. The functional currency of Teck, the parent entity, is the Canadian dollar, which is also the presentation currency of our consolidated financial statements. Foreign operations are translated from their functional currencies, generally the U.S. dollar, into Canadian dollars on consolidation. Items in the statements of income (loss) and other comprehensive income (loss) are translated using weighted average exchange rates that reasonably approximate the exchange rate at the transaction date. Items on the balance sheet are translated at the closing spot exchange rate. Exchange differences on the translation of the net assets of entities with functional currencies other than the Canadian dollar, and any offsetting exchange differences on debt used to hedge those assets, are recognized in a separate component of equity through other comprehensive income (loss). Exchange differences that arise relating to long-term intra-group balances that form part of the net investment in a foreign operation are also recognized in this separate component of equity through other comprehensive income (loss). On disposition or partial disposition of a foreign operation, the cumulative amount of related exchange differences recorded in a separate component of equity is recognized in the statement of income (loss). Revenue Our revenue consists of sales of copper, zinc and lead concentrates, steelmaking coal, refined zinc, lead and silver and blended bitumen. We also sell other by-products, including molybdenum concentrates, various refined specialty metals, chemicals and fertilizers. Our performance obligations relate primarily to the delivery of these products to our customers, with each separate shipment representing a separate performance obligation. Revenue, including revenue from the sale of by-products, is recognized at the point in time when the customer obtains control of the product. Control is achieved when a product is delivered to the customer, we have a present right to payment for the product, significant risks and rewards of ownership have transferred to the customer according to contract terms and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. 3. Summary of Significant Accounting Policies (continued) Base metal concentrates For copper, zinc and lead concentrates, control of the product generally transfers to the customer when an individual shipment parcel is loaded onto a carrier accepted by the customer. We sell a majority of our concentrates on commercial terms where we are responsible for providing freight services after the date at which control of the product passes to the customer. We are the principal to this freight performance obligation. A minority of zinc concentrate sales are made on consignment. For consignment transactions, control of the product transfers to the customer and revenue is recognized at the time the product is consumed in the customer’s process. The majority of our metal concentrates are sold under pricing arrangements where final prices are determined by quoted market prices in a period subsequent to the date of sale. For these sales, revenue is recorded based on the estimated consideration to be received at the date of sale, with reference to relevant commodity market prices. Adjustments are made to settlement receivables in subsequent periods based on movements in quoted commodity prices up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). Metal concentrate sales are billed based on provisional weights and assays upon the passage of control to the customer. The first provisional invoice is billed to the customer at the time of transfer of control. As final prices, weights and assays are received, additional invoices are issued and collected. In general, consideration is promptly collected from customers; however, the payment terms are customer-specific and subject to change based on market conditions and other factors. We generally retain title to these products until we receive the first contracted payment, which is typically received shortly after loading or shortly after arrival at the destination port, solely to manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining control of the product. Steelmaking coal For steelmaking coal, control of the product generally transfers to the customer when an individual shipment parcel is loaded onto a carrier accepted by or directly contracted by the customer. For a majority of steelmaking coal sales, we are not responsible for the provision of shipping or product insurance after the transfer of control. For certain sales, we arrange shipping on behalf of our customers and are the agent to these shipping transactions. Steelmaking coal is sold under spot or average pricing contracts. For spot price contracts, pricing is final when revenue is recognized. For average pricing contracts, the final pricing is determined based on quoted steelmaking coal price assessments over a specific period. Control of the goods may transfer and revenue may be recognized before, during or subsequent to the period in which final average pricing is determined. For all steelmaking coal sales under average pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on estimated consideration to be received at the date of sale with reference to steelmaking coal price assessments. For average pricing contracts, adjustments are made to settlement receivables in subsequent periods based on published price assessments up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). Steelmaking coal sales are billed based on final quality and quantity measures upon the passage of control to the customer. If pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized. The payment terms generally require prompt collection from customers; however, payment terms are customer-specific and subject to change based on market conditions and other factors. We generally retain title to these products until we receive the first contracted payment, which is typically received shortly after loading, solely to manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining control of the product. Refined metals For sales of refined metals, control of the product transfers to the customer when the product is loaded onto a carrier accepted by the customer. For these products, loading generally coincides with the transfer of title. 3. Summary of Significant Accounting Policies (continued) Our refined metals are sold under spot or average pricing contracts. For spot sales contracts, pricing is final when revenue is recognized. For refined metal sales contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on the estimated consideration to be received at the date of sale with reference to commodity market prices. Adjustments are made to settlement receivables in subsequent periods based on movements in quoted commodity prices up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). We sell a portion of our refined metals on commercial terms where we are responsible for providing freight services after the date at which control of the product passes to the customer. We are the principal to this freight performance obligation. Refined metal sales are billed based on final specification measures upon the passage of control to the customer. If pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized. In general, consideration is promptly collected from customers; however, the payment terms are customer-specific and subject to change based on market conditions and other factors. Blended bitumen For blended bitumen, control of the product generally transfers to the customer when the product passes the delivery point as specified in the contract, which normally coincides with title and risk transfer to the customer. The majority of our blended bitumen is sold under pricing arrangements where final prices are determined based on commodity price indices that are finalized at or near the date of sale. Payments for blended bitumen sales are usually due and settled within 30 days. Our revenue for blended bitumen is net of royalty payments to governments. Financial Instruments We recognize financial assets and liabilities on the balance sheet when we become a party to the contractual provisions of the instrument. Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and money market investments with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Cash is classified as a financial asset that is subsequently measured at amortized cost. Cash equivalents are classified as subsequently measured at amortized cost, except for money market investments, which are classified as subsequently measured at fair value through profit (loss). Trade receivables Trade receivables relate to amounts owing from sales under our spot pricing contracts for steelmaking coal, refined metals, blended bitumen, chemicals and fertilizers. These receivables are non-interest bearing and are recognized at face amount, except when fair value is materially different and are subsequently measured at amortized cost. Trade receivables recorded are net of lifetime expected credit losses. Settlement receivables Settlement receivables arise from base metal concentrate sales contracts and average pricing steelmaking coal contracts, where amounts receivable vary based on underlying commodity prices or steelmaking coal price assessments. Settlement receivables are classified as fair value through profit (loss) and are recorded at fair value at each reporting period based on quoted commodity prices or published price assessments up to the date of final pricing. The changes in fair value are recorded in other operating income (expense). 3. Summary of Significant Accounting Policies (continued) Investments in marketable equity securities Investments in marketable equity securities are classified, at our election, as subsequently measured at fair value through other comprehensive income (loss). For new investments in marketable equity securities, we can elect the same classification as subsequently measured at fair value through other comprehensive income (loss), or we can elect to classify an investment as at fair value through profit (loss). This election can be made on an investment-by-investment basis and is irrevocable. Investment transactions are recognized on the trade date, with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date. When investments in marketable equity securities subsequently measured at fair value through other comprehensive income (loss) are disposed of, the cumulative gains and losses recognized in other comprehensive income (loss) are not recycled to profit (loss) and remain within equity. Dividends are recognized in profit (loss). These investments are not assessed for impairment. Investments in debt securities Investments in debt securities are classified as subsequently measured at fair value through other comprehensive income (loss) and recorded at fair value. Investment transactions are recognized on the trade date, with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date. Unrealized gains and losses on debt securities are recognized in other comprehensive income (loss) until investments are disposed of and the cumulative gains and losses recognized in other comprehensive income (loss) are reclassified from equity to profit (loss) at that time. Loss allowances and interest income are recognized in profit (loss). Trade payables Trade payables are non-interest bearing if paid when due and are recognized at face amount, except when fair value is materially different. Trade payables are subsequently measured at amortized cost. Debt Debt is initially recorded at fair value, net of transaction costs. Debt is subsequently measured at amortized cost, calculated using the effective interest rate method. Derivative instruments Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are classified as at fair value through profit (loss) and, accordingly, are recorded on the balance sheet at fair value. Unrealized gains and losses on derivatives not designated in a hedging relationship are recorded as part of other operating income (expense) or non-operating income (expense) in profit (loss) depending on the nature of the derivative. Fair values for derivative instruments are determined using inputs based on market conditions existing at the balance sheet date or settlement date of the derivative. Derivatives embedded in non-derivative contracts are recognized separately unless they are closely related to the host contract. Expected credit losses For trade receivables, we apply the simplified approach to determining expected credit losses, which requires expected lifetime losses to be recognized upon initial recognition of the receivables. Loss allowances on investments in debt securities are initially assessed based on the expected 12-month credit loss. At each reporting date, we assess whether the credit risk for our debt securities has increased significantly since initial recognition. If the credit risk has increased significantly since initial recognition, the loss allowance is adjusted to be based on the lifetime expected credit losses. Hedging Certain derivative investments may qualify for hedge accounting. At the inception of hedge relationships, we document the economic relationship between hedging instruments and hedged items and our risk management objective and strategy for undertaking the hedge transactions. 3. Summary of Significant Accounting Policies (continued) For fair value hedges, any gains or losses on both the hedged item and the hedging instrument are recognized in the same line item in profit (loss). For cash flow hedges, any unrealized gains or losses on the hedging instrument relating to the effective portion of the hedge are initially recorded in other comprehensive income (loss). Where a cash flow hedge relates to a transaction where a non-financial asset or liability is recognized, accumulated gains or losses are recognized directly in the carrying amount of the non-financial asset or liability. The gains or losses are reclassified to profit (loss) in the same period or periods in which the hedged expected future cash flows affect profit (loss), when the hedged item ceases to exist or when the hedge is determined to be ineffective. For hedges of net investments in foreign operations, any foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are initially recorded in other comprehensive income (loss). Gains and losses are recognized in profit (loss) on the ineffective portion of the hedge, or when there is a disposition or partial disposition of a foreign operation being hedged. Inventories Finished products, work in process, raw materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Work in process inventory includes inventory in the milling, smelting or refining process and stockpiled ore at mining operations. Raw materials include concentrates for use at smelting and refining operations. For our oil sands mining and processing operation, raw materials consist of diluent used in blending, work in process inventory consists of raw bitumen and finished products consist of blended bitumen. For work in process and finished product inventories, cost includes all direct costs incurred in production, including direct labour and materials, freight, depreciation and amortization and directly attributable overhead costs. Production stripping costs that are not capitalized are included in the cost of inventories as incurred. Depreciation and amortization of capitalized production stripping costs are included in the cost of inventory. For supplies inventories, cost includes acquisition, freight and other directly attributable costs. When our operations are producing at reduced levels, fixed overhead costs are only allocated to inventory based on normal production levels. When inventories have been written down to net realizable value, we make a new assessment of net realizable value in each subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of the write-down on inventory not yet sold is reversed. We use both joint-product and by-product costing for work in process and finished product inventories. Joint-product costing is applied to primary products where the profitability of the operations is dependent upon the production of these products. Joint-product costing allocates total production costs based on the relative values of the products. By-product costing is used for products that are not the primary products produced by the operation. The by-products are allocated only the incremental costs of processes that are specific to the production of that product. Property, Plant and Equipment Land, buildings, plant and equipment Land is recorded at cost and buildings, plant and equipment are recorded at cost less accumulated depreciation and impairment losses. Cost includes the purchase price and the directly attributable costs to bring the assets to the location and condition necessary for them to be capable of operating in the manner intended by management. Depreciation of mobile equipment, buildings used for production and plant and processing equipment at our mining operations is calculated on a units-of-production basis. Depreciation of buildings not used for production and of plant and equipment at our smelting operations is calculated on a straight-line basis over the assets’ estimated useful lives. Where components of an asset have different useful lives, depreciation is calculated on each component separately. Depreciation commences when an asset is ready for its intended use. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively. 3. Summary of Significant Accounting Policies (continued) The expected useful lives of assets depreciated on a straight-line basis are as follows: • Buildings and equipment (not used for production) 1–43 years • Plant and equipment (smelting operations) 3–30 years Mineral properties and mine development costs The cost of acquiring and developing mineral properties or property rights, including pre-production waste rock stripping costs related to mine development and costs incurred during production to increase future output, are capitalized. Waste rock stripping costs incurred in the production phase of a surface mine are recorded as capitalized production stripping costs within property, plant and equipment when it is probable that the stripping activity will improve access to the orebody, when the component of the orebody or pit to which access has been improved can be identified and when the costs relating to the stripping activity can be measured reliably. When the actual waste-to-ore stripping ratio in a period is greater than the expected life-of-component waste-to-ore stripping ratio for that component, the excess is recorded as capitalized production stripping costs. Once available for use, mineral properties and mine development costs are depreciated on a units-of-production basis over the proven and probable reserves to which they relate. Since the stripping activity within a component of a mine improves access to the reserves of the same component, capitalized production stripping costs incurred during the production phase of a mine are depreciated on a units-of-production basis over the proven and probable reserves expected to be mined from the same component. Exploration and evaluation costs Property acquisition costs are capitalized. Other exploration and evaluation costs are capitalized if they relate to specific properties for which resources, as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects , exist or are near a specific property with a defined resource and it is expected that the expenditure can be recovered by future exploitation or sale. All other costs are charged to profit (loss) in the year in which they are incurred. Capitalized exploration and evaluation costs are considered to be tangible assets. These assets are not depreciated, as they are not currently available for use. When proven and probable reserves are determined and development is approved, capitalized exploration and evaluation costs are reclassified to mineral properties within property, plant and equipment. Costs of oil sands properties The costs of acquiring, exploring, evaluating and developing oil sands properties are capitalized when it is expected that these costs will be recovered through future exploitation or sale of the property. Capitalized development costs of oil sands properties are tangible assets. Assets that are not yet available for use are not depreciated. When proven and probable reserves are determined and development is approved, capitalized development costs for oil sands properties are reclassified to mineral properties within property, plant and equipment. Construction in progress Assets in the course of construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of property, plant and equipment and depreciation commences when the asset is available for its intended use. Repairs and maintenance Repairs and maintenance costs, including shutdown maintenance costs, are charged to expense as incurred, except when these repairs significantly extend the life of an asset or result in a significant operating improvement. In these instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment. 3. Summary of Significant Accounting Policies (continued) Borrowing costs We capitalize borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to construct or prepare for its intended use. We begin capitalizing borrowing costs when there are borrowings, expenditures are incurred and activities are undertaken to prepare the asset for its intended use. The amount of borrowing costs capitalized cannot exceed the actual amount of borrowing costs incurred during the period. All other borrowing costs are expensed as incurred. We suspend the capitalization of borrowing costs when we suspend the active development of a qualifying asset for an extended period. Capitalization recommences when active development resumes. We discontinue the capitalization of borrowing costs when substantially all of the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Capitalized borrowing costs are amortized over the useful life of the related asset. Impairment and impairment reversal of non-current assets The carrying amounts of assets included in property, plant and equipment and intangible assets are reviewed for impairment whenever facts and circumstances indicate that the recoverable amounts may be less than the carrying amounts. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash-generating unit (CGU) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal (FVLCD) and its value in use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the estimated recoverable amount and is recorded as an expense immediately. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. For mining assets, when a binding sale agreement is not readily available, FVLCD is usually estimated using a discounted cash flow approach, unless comparable market transactions on which to estimate fair value are available. Estimated future cash flows are calculated using estimated future commodity prices, reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or CGU in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimates of future cash flows have not been adjusted. A value in use calculation uses a pre-tax discount rate and a FVLCD calculation uses a post-tax discount rate. Indicators of impairment for exploration and evaluation assets are |
Areas of Judgment and Estimatio
Areas of Judgment and Estimation Uncertainty | 12 Months Ended |
Dec. 31, 2021 | |
Areas of Judgment and Estimation Uncertainty [Abstract] | |
Areas of Judgment and Estimation Uncertainty | Areas of Judgment and Estimation Uncertainty In preparing our consolidated financial statements, we make judgments in applying our accounting policies. The judgments that have the most significant effect on the amounts recognized in our financial statements are outlined below. In addition, we make assumptions about the future in deriving estimates used in preparing our consolidated financial statements. We have outlined information below about assumptions and other sources of estimation uncertainty as at December 31, 2021 that have a risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next year. a) Areas of Judgment Assessment of Impairment and Impairment Reversal Indicators Judgment is required in assessing whether certain factors would be considered an indicator of impairment or impairment reversal. We consider both internal and external information to determine whether there is an indicator of impairment or impairment reversal present and, accordingly, whether impairment testing is required. The information we consider in assessing whether there is an indicator of impairment or impairment reversal includes, but is not limited to, market transactions for similar assets, commodity prices, treatment charges, interest rates, foreign exchange rates, our market capitalization, reserves and resources, mine plans and operating results. In the fourth quarter of 2021, as a result of higher market expectations for long-term copper prices, we performed an impairment reversal test for our Carmen de Andacollo CGU under the requirements of IAS 36, Impairment of Assets (Note 7(a)). In addition, mine plans with updated information for Fort Hills became available in the fourth quarter of 2021, which required us to perform an impairment test on our Fort Hills CGU (Note 7 (a)). I n the fourth quarter of 2020, updated mine plans for Fort Hills became available, reflecting an earlier-than-planned restart of the second train of operations, and including operating and capital cost reductions over the life of mine. These updates to the mine plans indicated a change in the valuation of the asset. This, combined with macroeconomic conditions, including the cost of capital for oil assets and lower market expectations for long-term Western Canadian Select (WCS) heavy oil prices, required us to perform an impairment test for our Fort Hills CGU. During the first quarter of 2020, as a result of then-lower market expectations of WCS heavy oil prices over the next three years, combined with reduced production in the near term, we performed an impairment test for our interest in Fort Hills (Note 7(a)) . 4. Areas of Judgment and Estimation Uncertainty (continued) Property, Plant and Equipment – Determination of Available for Use Date Judgment is required in determining the date that property, plant and equipment is available for use. An asset is available for use when it is in the location and condition necessary to operate in the manner intended by management. We considered several factors in making the determination of when the Neptune port upgrade project was available for use including, but not limited to, design capacity of the asset, throughput levels achieved, capital spending remaining and commissioning status. As at September 30, 2021, based on assessment of relevant factors, the Neptune port upgrade project was considered available for use. We commenced depreciation of the asset and ceased capitalization of borrowing costs as of the date the asset was available for use. Joint Arrangements We are a party to a number of arrangements over which we do not have control. Judgment is required in determining whether joint control over these arrangements exists and, if so, which parties have joint control and whether each arrangement is a joint venture or a joint operation. In assessing whether we have joint control, we analyze the activities of each arrangement and determine which activities most significantly affect the returns of the arrangement over its life. These activities are determined to be the relevant activities of the arrangement. If unanimous consent is required over the decisions about the relevant activities, the parties whose consent is required would have joint control over the arrangement. The judgments around which activities are considered the relevant activities of the arrangement are subject to analysis by each of the parties to the arrangement and may be interpreted differently. When performing this assessment, we generally consider decisions about activities such as managing the asset while it is being designed, developed and constructed, during its operating life and during the closure period. We may also consider other activities, including the approval of budgets, expansion and disposition of assets, financing, significant operating and capital expenditures, appointment of key management personnel, representation on the board of directors and other items. When circumstances or contractual terms change, we reassess the control group and the relevant activities of the arrangement. If we have joint control over the arrangement, an assessment of whether the arrangement is a joint venture or a joint operation is required. This assessment is based on whether we have rights to the assets, and obligations for the liabilities, relating to the arrangement or whether we have rights to the net assets of the arrangement. In making this determination, we review the legal form of the arrangement, the terms of the contractual arrangement and other facts and circumstances. In a situation where the legal form and the terms of the contractual arrangement do not give us rights to the assets and obligations for the liabilities, an assessment of other facts and circumstances is required, including whether the activities of the arrangement are primarily designed for the provision of output to the parties and whether the parties are substantially the only source of cash flows contributing to the arrangement. The consideration of other facts and circumstances may result in the conclusion that a joint arrangement is a joint operation. This conclusion requires judgment and is specific to each arrangement. Other facts and circumstances have led us to conclude that Antamina and Fort Hills are joint operations for the purposes of our consolidated financial statements. The other facts and circumstances considered for both of these arrangements include the provision of output to the parties of the joint arrangements and the funding obligations. For both Antamina and Fort Hills, we will take our share of the output from the assets directly over the life of the arrangement. We have concluded that this gives us direct rights to the assets and obligations for the liabilities of these arrangements proportionate to our ownership interests. Streaming Transactions When we enter into a long-term streaming arrangement linked to production at specific operations, judgment is required in assessing the appropriate accounting treatment for the transaction on the closing date and in future periods. We consider the specific terms of each arrangement to determine whether we have disposed of an interest in the reserves and resources of the respective operation or executed some other form of arrangement. This assessment considers what the counterparty is entitled to and the associated risks and rewards attributable to them over the life of the operation. These include the contractual terms related to the total production over the life of the arrangement as compared to the expected production over the life of the mine, the percentage being sold, the percentage of payable metals produced, the commodity price referred to in the ongoing payment and any guarantee relating to the upfront payment if production ceases. For our silver and gold streaming arrangements at Antamina and Carmen de Andacollo, respectively, there is no guarantee associated with the upfront payment. We have concluded that control of the rights to the silver and gold mineral interests were transferred to the buyers when the contracts came into effect. Therefore, we consider these arrangements a disposition of a mineral interest. 4. Areas of Judgment and Estimation Uncertainty (continued) Based on our judgment, control of the interest in the reserves and resources transferred to the buyer when the contracts were executed. At that time, we recognized the amount of the gain related to the disposition of the reserves and resources, as we had the right to payment, the customer was entitled to the commodities, the buyer had no recourse in requiring Teck to mine the product and the buyer had significant risks and rewards of ownership of the reserves and resources. We recognize the amount of consideration related to refining, mining and delivery services as the work is performed. Deferred Tax Assets and Liabilities Judgment is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the balance sheet and what tax rate is expected to be applied in the year when the related temporary differences reverse. We also evaluate the recoverability of deferred tax assets based on an assessment of our ability to use the underlying future tax deductions before they expire against future taxable profits or capital gains. Deferred tax liabilities arising from temporary differences on investments in subsidiaries, joint ventures and associates are recognized unless the reversal of the temporary differences is not expected to occur in the foreseeable future and can be controlled. Judgment is also required on the application of income tax legislation. These judgments are subject to risk and uncertainty and could result in an adjustment to the deferred tax provision and a corresponding credit or charge to profit (loss). b) Sources of Estimation Uncertainty Impairment Testing When impairment testing is required, discounted cash flow models are used to determine the recoverable amount of respective assets. These models are prepared internally or with assistance from third-party advisors when required. When relevant market transactions for comparable assets are available, these are considered in determining the recoverable amount of assets. Significant assumptions used in preparing discounted cash flow models include commodity prices, reserves and resources, mine production, operating costs, capital expenditures, discount rates and foreign exchange rates. Note 7(c) outlines the significant inputs used when performing goodwill and other asset impairment testing. These inputs are based on management’s best estimates of what an independent market participant would consider appropriate. Changes in these inputs may alter the results of impairment testing, the amount of the impairment charges or reversals recorded in the statement of income (loss) and the resulting carrying values of assets. Estimated Recoverable Reserves and Resources Mineral and oil reserve and resource estimates are based on various assumptions relating to operating matters as set forth in National Instrument 43-101, Standards of Disclosure for Mineral Projects and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities . Assumptions used include production costs, mining and processing recoveries, cut-off grades, sales volumes, long-term commodity prices, exchange rates, inflation rates, tax and royalty rates and capital costs. Cost estimates are based on prefeasibility or feasibility study estimates or operating history. Estimates are prepared by or under the supervision of appropriately qualified persons, or qualified reserves evaluators, but will be affected by forecasted commodity prices, inflation rates, exchange rates, capital and production costs and recoveries, among other factors. Estimated recoverable reserves and resources are used in performing impairment testing, to determine the depreciation of property, plant and equipment at operating mine sites, in accounting for capitalized production stripping costs and also in forecasting the timing of settlement of decommissioning and restoration costs. Changes in reserve and resource estimates are most significant to estimating the recoverable amount in impairment tests. Decommissioning and Restoration Provisions Decommissioning and restoration provisions (DRPs) are based on future cost estimates using information available at the balance sheet date that are developed by management’s experts (Note 23(a)). DRPs represent the present value of estimated costs of future decommissioning and other site restoration activities, including costs associated with the management of water and water quality in and around each closed site. DRPs are adjusted at each reporting period for changes to factors such as the expected amount of cash flows required to discharge the liability, the timing of such cash flows and the credit-adjusted discount rate. DRPs require significant estimates and assumptions, including the requirements of the relevant legal and regulatory framework and the timing, extent and costs of required decommissioning and restoration activities. Our estimates of the costs associated with the management of water and water quality in and around each closed site include assumptions with respect to the volume and location of water to be treated, the methods used to treat the water and the related water treatment costs. To the extent the actual costs differ from these estimates, adjustments will be recorded and the statement of income (loss) may be affected. 4. Areas of Judgment and Estimation Uncertainty (continued) Provision for Income Taxes We calculate current and deferred tax provisions for each of the jurisdictions in which we operate. Actual amounts of income tax expense are not final until tax returns are filed and accepted by the relevant authorities. This occurs subsequent to the issuance of our financial statements and the final determination of actual amounts may not be completed for a number of years. Therefore, profit (loss) in subsequent periods will be affected by the amount that estimates differ from the final tax return. Deferred Tax Assets and Liabilities Assumptions about the generation of future taxable profits and repatriation of retained earnings depend on management’s estimates of future production and sales volumes, commodity prices, reserves and resources, operating costs, decommissioning and restoration costs, capital expenditures, dividends and other capital management transactions. These estimates could result in an adjustment to the deferred tax provision and a corresponding adjustment to profit (loss). c) Effects of COVID-19 In March 2020, the World Health Organization declared a pandemic related to COVID-19 and the impacts on global commerce have been far-reaching. We continue to act to protect the safety and health of our employees, contractors and the communities in which we operate in accordance with guidance from governments and public health authorities. These measures, combined with commodity market fluctuations, significantly affected our financial results for 2020. There are ongoing challenges associated with COVID-19. Operating our mines at full production and continuing construction on our QB2 project in a COVID-19 environment increases certain costs for medical testing, safety equipment, safety supplies and additional transportation and accommodation for social distancing, among other things. In 2021, we continued to maintain the safety of our workforce and the communities in which we operate while mitigating the operational impacts on our business. Throughout 2021, we continued to incur costs to operate with enhanced protocols in place. However, these expenditures are considered a cost of operating in this environment and for the year ended December 31, 2021, we did not record any amounts specifically identified as COVID-19 costs in other operating income (expense) (Note 8 ). In 2020, we applied judgment in determining when to suspend the capitalization of borrowing costs associated with QB2, which corresponded with the suspension of active development of the project. We similarly applied judgment to determine when active development of the project resumed and we recommenced capitalization of borrowing costs at that date. We suspended capitalization of borrowing costs for QB2 at the end of the first quarter of 2020, and we recommenced capitalization of borrowing costs on the project in the third quarter of 2020 consistent with the return to active construction. For the year ended December 31, 2020, we expensed costs of approximately $434 million relating primarily to the suspension of construction and remobilization of our QB2 project, of which $282 million was recorded as COVID-19 costs in other operating income (expense) (Note 8) and $103 million relates to interest that would have been capitalized if QB2 had not been suspended. Of the remaining $49 million, $41 million was recorded in cost of sales as a result of reduced production levels at our operations and $8 million was recorded as social responsibility and donations in other operating income (expense) (Note 8). |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
Revenue | Revenue a) Total Revenue by Major Product Type and Business Unit The following table shows our revenues disaggregated by major product type and by business unit. Our business units are reported based on the primary products that they produce and are consistent with our reportable segments (Note 28) that have revenue from contracts with customers. A business unit can have revenue from more than one commodity, as it can include an operation that produces more than one product. Intra-segment revenues are accounted for at current market prices as if the sales were made to arm’s-length parties and are eliminated on consolidation. (CAD$ in millions) 2021 Copper Zinc Steelmaking Coal Energy Total Copper $ 3,066 $ — $ — $ — $ 3,066 Zinc 286 2,336 — — 2,622 Steelmaking coal — — 6,251 — 6,251 Blended bitumen — — — 715 715 Silver 41 454 — — 495 Lead 6 439 — — 445 Other 53 345 — — 398 Intra-segment — (511) — — (511) $ 3,452 $ 3,063 $ 6,251 $ 715 $ 13,481 (CAD$ in millions) 2020 Copper Zinc Steelmaking Coal Energy Total Copper $ 2,119 $ — $ — $ — $ 2,119 Zinc 189 2,062 — — 2,251 Steelmaking coal — — 3,375 — 3,375 Blended bitumen — — — 454 454 Silver 35 432 — — 467 Lead 5 356 — — 361 Other 71 314 — — 385 Intra-segment — (464) — — (464) $ 2,419 $ 2,700 $ 3,375 $ 454 $ 8,948 5. Revenue (continued) b) Total Revenue by Region The following table shows our revenues disaggregated by geographical region. Revenues are attributed to regions based on the destination port or delivery location as designated by the customer. (CAD$ in millions) 2021 2020 Asia China $ 4,643 $ 1,861 Japan 1,437 1,211 South Korea 1,354 982 India 556 588 Other 894 757 Americas United States 1,679 1,189 Canada 1,279 1,027 Latin America 116 166 Europe Germany 731 610 Finland 182 124 Belgium 136 106 Spain 123 163 Other 351 164 $ 13,481 $ 8,948 |
Expenses by Nature
Expenses by Nature | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Expenses by Nature | Expenses by Nature (CAD$ in millions) 2021 2020 Employment-related costs: Wages and salaries $ 1,040 $ 971 Employee benefits and other wage-related costs 272 272 Bonus payments 266 128 Post-employment benefits and pension costs 154 124 1,732 1,495 Transportation 1,519 1,378 Depreciation and amortization 1,583 1,510 Raw material purchases 1,077 715 Fuel and energy 842 697 Operating supplies consumed 658 620 Maintenance and repair supplies 735 648 Contractors and consultants 811 648 Overhead costs 414 268 Royalties 373 266 Other operating costs 4 62 9,748 8,307 Adjusted for: Capitalized production stripping costs (667) (499) Change in inventory (313) 81 Total cost of sales, general and administration, exploration and research and innovation expenses $ 8,768 $ 7,889 |
Asset and Goodwill Impairment T
Asset and Goodwill Impairment Testing | 12 Months Ended |
Dec. 31, 2021 | |
Impairment of Assets [Abstract] | |
Asset and Goodwill Impairment Testing | Asset and Goodwill Impairment Testing a) Impairment Reversal and Asset Impairment The following pre-tax impairment reversal and (asset impairment) were recorded in profit (loss): Impairment Reversal and (Asset Impairment) (CAD$ in millions) 2021 2020 Carmen de Andacollo CGU $ 215 $ — Fort Hills CGU — (1,244) Total $ 215 $ (1,244) Impairment Reversal and (Asset Impairment) – 2021 During 2021, we assessed whether there were any indicators of impairment reversal or impairment for our assets and did not identify any matters requiring us to perform an impairment or impairment reversal test, with the exception of the Carmen de Andacollo CGU and the Fort Hills CGU, as outlined below. Carmen de Andacollo CGU In the fourth quarter of 2021, as a result of higher market expectations for long-term copper prices, we recorded a pre-tax impairment reversal of $215 million (after-tax $150 million) related to our Carmen de Andacollo CGU. The estimated post-tax recoverable amount was significantly higher than the carrying value. The impairment reversal affects the profit (loss) of our copper operating segment (Note 28). 7. Asset and Goodwill Impairment Testing (continued) Fort Hills CGU In the fourth quarter of 2021, as a result of updated mine plans for Fort Hills, we performed an impairment test on our Fort Hills CGU as at December 31, 2021. Using a long-term WCS heavy oil price of US$48 per barrel, a long-term Canadian to U.S. dollar foreign exchange rate of CAD$1.28 to US$1.00 and an 8% real, post-tax discount rate resulted in a recoverable amount of $2.1 billion, which approximated our carrying value as at December 31, 2021. Cash flow projections used in the analysis as at December 31, 2021 were based on a life of mine plan with cash flows covering a period of 37 years. Asset Impairment – 2020 Fort Hills CGU In the fourth quarter of 2020, updated mine plans for Fort Hills became available, reflecting an earlier than planned restart of the second train of operations and including operating and capital cost reductions over the life of mine. These updates to the mine plans indicated a change in the valuation of the asset. This, combined with macroeconomic conditions including the cost of capital for oil assets and lower market expectations for long-term WCS heavy oil prices, required us to perform an impairment test for our Fort Hills CGU. As a result, we recorded a non-cash, pre-tax asset impairment for our Fort Hills CGU of $597 million (after-tax $438 million) in the fourth quarter. The estimated post-tax recoverable amount of our Fort Hills CGU of $2.1 billion was lower than our carrying value. Cash flow projections used in the analysis as at December 31, 2020 were based on a life of mine plan with cash flows covering a period of 45 years. Combined with the pre-tax impairment of $647 million (after-tax $474 million) recorded in the first quarter of 2020, we recorded total pre-tax impairments related to our Fort Hills CGU of $1.2 billion for the year ended December 31, 2020. These impairments affected the profit (loss) of our energy operating segment (Note 28). Sensitivity Analysis for Fort Hills CGU Impairment Test as at December 31, 2021 The key inputs used in our determination of recoverable amounts interrelate significantly with each other and with our operating plans. For example, a decrease in long-term commodity prices could result in amendments to the mine plans that would partially offset the effect of lower prices through lower operating and capital costs. It is difficult to determine how all of these factors would interrelate, but in estimating the effect of changes in these assumptions on fair values, we believe that all of these factors need to be considered together. A linear extrapolation of these effects becomes less meaningful as the change in assumption increases. The valuation of our Fort Hills CGU is most sensitive to changes in WCS heavy oil prices, Canadian/U.S. dollar exchange rates and discount rates. Based on the discounted cash flow model used to determine the recoverable amount as at December 31, 2021, ignoring the above-described interrelationships, a US$1 change in the real long-term WCS heavy oil price would result in a change in the recoverable amount of $100 million. A $0.01 change in the Canadian dollar against the U.S. dollar would result in a change in the recoverable amount of approximately $30 million. A 25 basis point change in the discount rate would result in a change in the recoverable amount of approximately $50 million. 7. Asset and Goodwill Impairment Testing (continued) b) Annual Goodwill Impairment Testing The allocation of goodwill to CGUs or groups of CGUs reflects how goodwill is monitored for internal management purposes. Our Quebrada Blanca CGU and steelmaking coal group of CGUs have goodwill allocated to them (Note 16). We did not identify any goodwill impairment indicators during 2021. We performed our annual goodwill impairment testing at October 31, 2021, calculating the recoverable amount on a FVLCD basis and did not identify any goodwill impairment losses. Cash flow projections are based on expected mine life. For our steelmaking coal operations, the cash flows cover periods of 14 to 50 years, with a steady state thereafter until reserves and resources are exhausted. For Quebrada Blanca, the cash flow covers the current 28 year expected mine life of the QB2 project and a projected expansion, totaling 42 years, with an estimate of in situ value applied to the remaining resources. Given the nature of expected future cash flows used to determine the recoverable amount, a material change could occur over time as the cash flows are significantly affected by the key assumptions described below in Note 7(c). Sensitivity Analysis for Annual Goodwill Impairment Testing The recoverable amounts of our steelmaking coal group of CGUs and our Quebrada Blanca CGU both exceeded their carrying amounts at the date of our annual goodwill impairment testing. There are no reasonably possible changes to any of the below key assumptions, which would lead to either of the carrying amounts exceeding their recoverable amounts. c) Key Assumptions The following are the key assumptions used in our impairment testing calculations for the years ended December 31, 2021 and 2020: 2021 2020 WCS heavy oil prices per barrel Long-term real price in 2026 of US$48 Long-term real price in 2025 of US$46 Steelmaking coal prices per tonne Long-term real price in 2026 of US$150 Long-term real price in 2025 of US$150 Copper prices per pound Long-term real price in 2026 of US$3.30 Long-term real price in 2025 of US$3.00 Post-tax real discount rates 6.0%—8.0% 6.0%—8.0% Long-term foreign exchange rates 1 U.S. to 1.28 Canadian dollars 1 U.S. to 1.30 Canadian dollars Commodity Prices Commodity price assumptions use current prices in the initial year and trend to the long term prices in the table above. Prices are based on a number of factors, including forward curves in the near term and are benchmarked with external sources of information, including information published by our peers and market transactions, where possible, to ensure they are within the range of values used by market participants. Discount Rates Discount rates are based on market participant mining and oil sands weighted average costs of capital adjusted for risks specific to the operation or asset where appropriate. Foreign Exchange Rates Foreign exchange rates are benchmarked with external sources of information based on a range used by market participants. 7. Asset and Goodwill Impairment Testing (continued) Reserves and Resources and Mine Production Future mineral and oil production is included in projected cash flows based on plant capacities and mineral and oil reserve and resource estimates and related exploration and evaluation work undertaken by appropriately qualified persons or qualified reserves evaluators. Operating Costs and Capital Expenditures Operating costs and capital expenditures are based on life of mine plans and internal management forecasts. Cost estimates incorporate management experience and expertise, current operating costs, the nature and location of each operation and the risks associated with each operation. Future capital expenditures are based on management’s best estimate of expected future capital requirements, with input from management’s experts where appropriate. All committed and anticipated capital expenditures based on future cost estimates have been included in the projected cash flows. Operating cost and capital expenditure assumptions are subject to ongoing optimization and review by management. Recoverable Amount Basis |
Other Operating Income (Expense
Other Operating Income (Expense) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Other Operating Income (Expense) | Other Operating Income (Expense) (CAD$ in millions) 2021 2020 Settlement pricing adjustments (Note 29(b)) $ 442 $ 47 Share-based compensation (125) (47) Environmental costs and remeasurement of decommissioning and restoration (108) (270) Care and maintenance costs (65) (52) Social responsibility and donations (27) (23) Gain (loss) on sale of assets (14) 34 Commodity derivatives (22) 62 Take or pay contract costs (97) (104) COVID-19 costs (Note 4(c)) — (282) Other (62) (90) $ (78) $ (725) |
Finance Income and Finance Expe
Finance Income and Finance Expense | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Finance Income and Finance Expense | Finance Income and Finance Expense (CAD$ in millions) 2021 2020 Finance income Investment income $ 5 $ 10 Total finance income $ 5 $ 10 Finance expense Debt interest $ 298 $ 275 Interest on advances from SMM/SC 37 42 Interest on lease liabilities (Note 19(c)) 35 37 Letters of credit and standby fees 44 48 Net interest expense on retirement benefit plans 5 5 Accretion on decommissioning and restoration provisions (Note 23(a)) 151 114 Other 15 8 585 529 Less capitalized borrowing costs (Note 15) (370) (251) Total finance expense $ 215 $ 278 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Non-Operating Income (Expense) | Non-Operating Income (Expense) (CAD$ in millions) 2021 2020 QB2 variable consideration to IMSA and ENAMI (a) $ (141) $ 56 Foreign exchange gains (losses) 39 (2) Loss on debt redemption or purchase (Note 18(b)) — (11) Other (3) — $ (105) $ 43 a) QB2 variable consideration to IMSA and ENAMI During the year ended December 31, 2021, we recorded $97 million (2020 – $nil) of expense (Note 29(b)) related to a derivative financial liability that arose from our 2018 acquisition of an additional 13.5% interest in QBSA through the purchase of Inversiones Mineras S.A. (IMSA), a private Chilean company. This derivative financial liability is carried at fair value, with changes in fair value being recognized in profit (loss). The purchase price at the date of acquisition included additional amounts that may become payable to the extent that average copper prices exceed US$3.15 per pound in each of the first three years following commencement of commercial production, as defined in the acquisition agreement, up to a cumulative maximum of US$100 million if commencement of commercial production occurs prior to January 21, 2024 or up to a lesser maximum in certain circumstances thereafter. At the date of the acquisition, a nominal value was attributed to the additional payments. As at December 31, 2021, the fair value of this financial liability is $98 million (2020 – $nil) (Note 23), with estimated future average copper prices expected to exceed the US$3.15 per pound threshold, based on the expected timing of commencement of commercial production. The fair value of the liability to IMSA is calculated using a discounted cash flow method based on quoted market prices and is considered a Level 2 fair value measurement with significant other observable inputs on the fair value hierarchy (Note 30). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2021 | |
Cash Flow Statement [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (CAD$ in millions) December 31, December 31, Cash and cash equivalents Cash $ 637 $ 137 Investments with maturities from the date of acquisition of three months or less 790 313 $ 1,427 $ 450 Cash and cash equivalents as at December 31, 2021 include $88 million (2020 – $82 million) held in QBSA and $38 million (2020 – $26 million) held in Antamina. These cash and cash equivalent balances are to be used within the respective entities for operating purposes and cannot be transferred to other entities within the group. (CAD$ in millions) 2021 2020 Net change in non-cash working capital items Trade and settlement receivables $ (670) $ (294) Inventories (412) 100 Prepaids and other current assets (105) (102) Trade accounts payable and other liabilities 313 55 $ (874) $ (241) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Inventories | Inventories (CAD$ in millions) December 31, December 31, Supplies $ 797 $ 757 Raw materials 250 197 Work in process 741 592 Finished products 728 410 2,516 1,956 Less long-term portion (Note 13) (126) (84) $ 2,390 $ 1,872 Cost of sales of $8.4 billion (2020 – $7.6 billion) includes $7.6 billion (2020 – $7.0 billion) of production costs that are recognized as part of inventories and subsequently expensed when sold during the year. Total inventories held at net realizable value amounted to $45 million at December 31, 2021 (2020 – $75 million). Total inventory write-downs in 2021 were $12 million (2020 – $151 million) and were included as part of cost of sales. Long-term inventories consist of ore stockpiles and other in-process materials that are not expected to be processed within one year. |
Financial and Other Assets
Financial and Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Financial and Other Assets | Financial and Other Assets (CAD$ in millions) December 31, December 31, Long-term receivables and deposits $ 322 $ 289 Marketable equity and debt securities carried at fair value 178 178 Pension plans in a net asset position (Note 22(a)) 449 301 Derivative assets 63 77 Long-term portion of inventories (Note 12) 126 84 Finite life intangibles 395 309 Other 38 31 $ 1,571 $ 1,269 |
Investments in Associates and J
Investments in Associates and Joint Ventures | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Investments in Associates and Joint Ventures | Investments in Associates and Joint Ventures (CAD$ in millions) NuevaUnión Other Total At January 1, 2020 $ 1,071 $ 8 $ 1,079 Contributions 11 1 12 Changes in foreign exchange rates (22) — (22) Share of income (loss) 1 (2) (1) Other — (1) (1) At December 31, 2020 $ 1,061 $ 6 $ 1,067 Contributions 5 — 5 Changes in foreign exchange rates (4) (1) (5) Share of loss (3) — (3) Other — (4) (4) At December 31, 2021 $ 1,059 $ 1 $ 1,060 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment (CAD$ in millions) Exploration Mineral Land, Capitalized Construction Total At December 31, 2019 Cost $ 885 $ 20,155 $ 16,951 $ 6,073 $ 5,292 $ 49,356 Accumulated depreciation — (5,973) (8,599) (3,429) — (18,001) Net book value $ 885 $ 14,182 $ 8,352 $ 2,644 $ 5,292 $ 31,355 Year ended December 31, 2020 Opening net book value $ 885 $ 14,182 $ 8,352 $ 2,644 $ 5,292 $ 31,355 Additions 22 — 368 563 3,353 4,306 Disposals (1) — (54) (5) (7) (67) Asset impairment — (261) (983) — — (1,244) Depreciation and amortization — (288) (774) (546) — (1,608) Transfers between classifications — 65 652 — (717) — Decommissioning and restoration — 814 56 — — 870 Capitalized borrowing costs — 84 — — 167 251 Changes in foreign exchange (3) (61) (40) (12) (169) (285) Closing net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 At December 31, 2020 Cost $ 903 $ 20,758 $ 16,722 $ 6,598 $ 7,919 $ 52,900 Accumulated depreciation — (6,223) (9,145) (3,954) — (19,322) Net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 Year ended December 31, 2021 Opening net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 Additions 45 — 181 740 3,877 4,843 Disposals — — (6) — (18) (24) Impairment reversal — 215 — — — 215 Depreciation and amortization — (373) (802) (694) — (1,869) Transfers between classifications — (50) 2,162 — (2,112) — Decommissioning and restoration — 250 39 — — 289 Capitalized borrowing costs — 115 — — 255 370 Changes in foreign exchange (4) (11) (13) (2) 10 (20) Closing net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382 At December 31, 2021 Cost $ 944 $ 21,362 $ 18,716 $ 7,334 $ 9,931 $ 58,287 Accumulated depreciation — (6,681) (9,578) (4,646) — (20,905) Net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382 15. Property, Plant and Equipment (continued) a) Exploration and Evaluation Significant exploration and evaluation projects in property, plant and equipment include the Galore Creek, San Nicolás and Zafranal projects. b) Borrowing Costs Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate on the project-specific debt, as applicable. Capitalized borrowing costs are classified with the asset they relate to within mineral properties, land, buildings, plant and equipment, or construction in progress. Our weighted average borrowing rate used for capitalization of borrowing costs in 2021 was 5.4% (2020 – 5.4%). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
Goodwill | Goodwill (CAD$ in millions) Steelmaking Quebrada Total January 1, 2020 $ 702 $ 399 $ 1,101 Changes in foreign exchange rates — (8) (8) December 31, 2020 $ 702 $ 391 $ 1,093 Changes in foreign exchange rates — (2) (2) December 31, 2021 $ 702 $ 389 $ 1,091 The results of our annual goodwill impairment analysis and key assumptions used in the analysis are outlined in Notes 7(b) and 7(c). |
Trade Accounts Payable and Othe
Trade Accounts Payable and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Trade Accounts Payable and Other Liabilities | Trade Accounts Payable and Other Liabilities (CAD$ in millions) December 31, December 31, Trade accounts payable and accruals $ 1,653 $ 1,428 Capital project accruals 546 599 Payroll-related liabilities 293 266 Accrued interest 100 104 Commercial and government royalties 325 229 Current portion of provisions (Note 23(a)) 210 173 Settlement payables (Note 29(b)) 39 61 Contract liabilities - consignment sales 30 15 Other 59 34 $ 3,255 $ 2,909 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Debt | Debt ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying 4.75% notes due January 2022 (b) $ 150 $ 190 $ 190 $ 150 $ 195 $ 190 3.75% notes due February 2023 (b) 108 140 137 108 144 139 3.9% notes due July 2030 (a) 550 751 688 550 781 690 6.125% notes due October 2035 609 1,005 761 609 1,005 764 6.0% notes due August 2040 490 795 620 490 782 622 6.25% notes due July 2041 795 1,349 997 795 1,309 1,001 5.2% notes due March 2042 399 602 500 399 596 502 5.4% notes due February 2043 377 586 473 377 571 475 3,478 5,418 4,366 3,478 5,383 4,383 QB2 project financing facility (c) 2,252 2,929 2,785 1,147 1,459 1,423 Revolving credit facilities (d) — — — 262 334 334 Antamina loan agreements (e) 176 223 223 90 115 115 $ 5,906 $ 8,570 $ 7,374 $ 4,977 $ 7,291 $ 6,255 Less current portion of debt (168) (213) (213) (90) (115) (115) $ 5,738 $ 8,357 $ 7,161 $ 4,887 $ 7,176 $ 6,140 The fair values of debt are determined using market values, if available, and discounted cash flows based on our cost of borrowing where market values are not available. The latter are considered Level 2 fair value measurements with significant other observable inputs on the fair value hierarchy (Note 30). a) Notes Issued in 2020 In 2020, we issued US$550 million principal amount of senior unsecured notes due July 2030 (2030 Notes). The 2030 Notes have a coupon of 3.9% per annum and an effective interest rate, after taking into account issuance costs, of 4.08%. These notes were issued at 99.513% of face value. Prior to April 15, 2030, the 2030 Notes can be redeemed, in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount and (ii) a make-whole amount plus, in each case, accrued and unpaid interest to the redemption date. On or after April 15, 2030, the 2030 Notes are redeemable at a price equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date. Net proceeds from this issuance, after underwriting and issuance costs, were US$542 million. The net proceeds and available cash were used to finance the note tender offer described below in Note 18(b) and to reduce amounts outstanding on our US$4.0 billion revolving credit facility. In October 2020, we executed an exchange offer for the 2030 Notes that allowed the holders to exchange their unregistered notes for publicly registered notes. There was no change in the aggregate principal amount of the 2030 Notes as a result of the exchange offer. b) Notes Purchased or Redeemed All of our outstanding notes are redeemable at any time by repaying the greater of the principal amount and the present value of the sum of the remaining scheduled principal and interest amounts discounted at a comparable treasury yield plus a stipulated spread, plus, in each case, accrued interest to, but not including, the date of redemption. In addition, all of our outstanding notes, except for notes due October 2035, are callable at 100% (plus accrued interest to, but not including, the date of redemption) within three to six months of maturity. 18. Debt (continued) On January 18, 2022, we redeemed the 4.75% notes at maturity for US$150 million plus accrued interest. In 2020, we purchased US$268 million aggregate principal amount of our outstanding notes pursuant to cash tender offers and a private purchase, the latter of which had a US$13 million principal amount (2020 Tender Offer). T he purchased notes comprised US$104 million of 4.5% notes due 2021, US$52 million of 4.75% notes due 2022 and US$112 million of 3.75% notes due 2023. The total cost of the purchases, including the premium for the purchase, was US$276 million. We recorded a pre-tax expense of $11 million in non-operating income (expense) (Note 10) in connection with the 2020 Tender Offer. In 2020, we redeemed all of the outstanding 4.5% notes due 2021 that were not purchased as a part of the 2020 Tender Offer. The total cost of the redemption, including the premium, was US$13 million. c) QB2 Project Financing Facility As at December 31, 2021, US$2.3 billion was outstanding under the US$2.5 billion limited recourse QB2 project financing facility. Amounts drawn under the facility bear interest at LIBOR plus applicable margins that vary over time and will be repaid in 17 semi-annual instalments starting the earlier of six months after project completion or June 2023. The facility is guaranteed pre-completion on several basis by SMM/SC pro rata to the respective equity interests in the Series A shares of QBSA. The facility is secured by pledges of Teck’s and SMM/SC’s interests in QBSA and by security over QBSA’s assets, which consist primarily of QB2 project assets. d) Revolving Credit Facilities On October 15, 2021 , we converted our US$4.0 billion revolving credit facility into a sustainability-linked facility and extended its maturity to October 2026. The facility has pricing adjustments where the cost will increase, decrease or remain unchanged based on our sustainability performance. Our sustainability performance over the term of the facility is measured by non-financial variables that are specific to our greenhouse gas emissions intensity, the percentage of women in our workforce and our high-potential safety incidents. In addition, on October 15, 2021, we cancelled our US$1.0 billion facility that was scheduled to mature in June 2022. Any amounts drawn under the US$4.0 billion facility can be repaid at any time and are due in full at its maturity date. As at December 31, 2021, the facility was undrawn. Amounts outstanding under the facility bear interest at LIBOR plus an applicable margin based on credit ratings and our sustainability performance, as described above. This facility requires our total net debt-to-capitalization ratio, which was 0.22 to 1.0 at December 31, 2021, not exceed 0.60 to 1.0 (Note 31). This facility does not have an earnings or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect borrowing condition. We maintain uncommitted bilateral credit facilities primarily for the issuance of letters of credit to support our future reclamation obligations. As at December 31, 2021, we had $2.1 billion of letters of credit outstanding. We also had $840 million in surety bonds outstanding at December 31, 2021 to support current and future reclamation obligations. e) Antamina Loan Agreements On July 12, 2021, Antamina entered into a US$1.0 billion loan agreement. Once fully drawn, our 22.5% share of the principal value of the loan will be US$225 million. As at December 31, 2021, our share of the amount drawn was US$158 million. Proceeds from the loan were used to repay existing credit facilities and to fund Antamina’s capital expenditure program. Amounts outstanding under this facility bear interest at LIBOR plus an applicable margin. The loan is non-recourse to us and the other Antamina owners and matures in 2026. On December 24, 2021 , Antamina entered into a US$80 million short-term loan agreement, which was repaid in January 2022. Our share of the amount drawn was US$18 million and the loan bore interest at 0.6%. 18. Debt (continued) f) Scheduled Principal Payments At December 31, 2021, scheduled principal payments during the next five years and thereafter are as follows: ($ in millions) US$ CAD$ 2022 $ 168 $ 213 2023 373 472 2024 265 336 2025 265 336 2026 422 536 Thereafter 4,413 5,594 $ 5,906 $ 7,487 g) Debt Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 4,913 $ 3,204 $ 6,255 $ 4,162 Cash flows Proceeds from debt 1,305 1,802 1,639 2,426 Redemption, purchase or repayment of debt (124) (338) (155) (457) Revolving credit facilities (262) 262 (335) 363 Non-cash changes Loss on debt redemption or purchase — 8 — 11 Changes in foreign exchange rates — — (10) (216) Finance fees and discount amortization (29) (29) (36) (39) Other 13 4 16 5 As at December 31 $ 5,816 $ 4,913 $ 7,374 $ 6,255 In conjunction with the subscription arrangement with SMM/SC, QBSA entered into a subordinated loan facility agreement with SMM/SC to advance QBSA up to US$1.3 billion. The advances are due to be repaid in full at maturity on January 15, 2038. Amounts outstanding under the facility bear interest at LIBOR plus an applicable margin. ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying QB2 Advances from SMM/SC $ 1,003 $ 1,288 $ 1,263 $ 739 $ 941 $ 934 The fair value of the advances is determined using discounted cash flows based on our cost of borrowing. This is considered a Level 2 fair value measurement with significant observable inputs on the fair value hierarchy (Note 30). a) QB2 Advances from SMM/SC Carrying Value Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 734 $ 702 $ 934 $ 912 Cash flows Advances 262 31 326 41 Non-cash changes Finance fee amortization 1 1 1 1 Changes in foreign exchange rates — — 2 (20) As at December 31 $ 997 $ 734 $ 1,263 $ 934 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases a) Right-of-Use Assets Our significant lease arrangements include contracts for leasing office premises, mining equipment, railcars, pipelines and road and port facilities. As at December 31, 2021, $704 million (2020 – $730 million) of right-of-use assets are recorded as part of land, buildings, plant and equipment within property, plant and equipment. (CAD$ in millions) 2021 2020 Opening net book value $ 730 $ 762 Additions 141 312 Depreciation (163) (166) Changes in foreign exchange rates and other (4) (178) Closing net book value $ 704 $ 730 b) Significant Individual Lease Arrangements Fort Hills entered into a service agreement in 2017 with TC Energy Corp. for the operation of the Northern Courier Pipeline and associated tanks to transport bitumen between Fort Hills and Fort McMurray, Alberta, for a period of 25 years with an option to renew for four additional five-year periods. We have assumed the extensions will be exercised in our determination of the lease liability. As at December 31, 2021, our share of the related lease liability was $195 million (2020 – $199 million). TAK leases road and port facilities from the Alaska Industrial Development and Export Authority, through which it ships all concentrates produced at the Red Dog mine. The lease requires TAK to pay a minimum annual user fee of US$6 million until 2040. As at December 31, 2021, the related lease liability was $87 million (2020 – $99 million). c) Lease Liability Continuity (CAD$ in millions) 2021 2020 As at January 1 $ 692 $ 672 Cash flows Principal payments (139) (163) Interest payments (35) (37) Non-cash changes Additions 151 319 Interest expense (Note 9) 35 37 Changes in foreign exchange and other (10) (136) As at December 31 $ 694 $ 692 Less current portion (127) (119) Long-term lease liabilities $ 567 $ 573 |
QB2 Advances from SMM_SC
QB2 Advances from SMM/SC | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
QB2 Advances from SMM/SC | Debt ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying 4.75% notes due January 2022 (b) $ 150 $ 190 $ 190 $ 150 $ 195 $ 190 3.75% notes due February 2023 (b) 108 140 137 108 144 139 3.9% notes due July 2030 (a) 550 751 688 550 781 690 6.125% notes due October 2035 609 1,005 761 609 1,005 764 6.0% notes due August 2040 490 795 620 490 782 622 6.25% notes due July 2041 795 1,349 997 795 1,309 1,001 5.2% notes due March 2042 399 602 500 399 596 502 5.4% notes due February 2043 377 586 473 377 571 475 3,478 5,418 4,366 3,478 5,383 4,383 QB2 project financing facility (c) 2,252 2,929 2,785 1,147 1,459 1,423 Revolving credit facilities (d) — — — 262 334 334 Antamina loan agreements (e) 176 223 223 90 115 115 $ 5,906 $ 8,570 $ 7,374 $ 4,977 $ 7,291 $ 6,255 Less current portion of debt (168) (213) (213) (90) (115) (115) $ 5,738 $ 8,357 $ 7,161 $ 4,887 $ 7,176 $ 6,140 The fair values of debt are determined using market values, if available, and discounted cash flows based on our cost of borrowing where market values are not available. The latter are considered Level 2 fair value measurements with significant other observable inputs on the fair value hierarchy (Note 30). a) Notes Issued in 2020 In 2020, we issued US$550 million principal amount of senior unsecured notes due July 2030 (2030 Notes). The 2030 Notes have a coupon of 3.9% per annum and an effective interest rate, after taking into account issuance costs, of 4.08%. These notes were issued at 99.513% of face value. Prior to April 15, 2030, the 2030 Notes can be redeemed, in whole or in part, at a redemption price equal to the greater of (i) 100% of the principal amount and (ii) a make-whole amount plus, in each case, accrued and unpaid interest to the redemption date. On or after April 15, 2030, the 2030 Notes are redeemable at a price equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date. Net proceeds from this issuance, after underwriting and issuance costs, were US$542 million. The net proceeds and available cash were used to finance the note tender offer described below in Note 18(b) and to reduce amounts outstanding on our US$4.0 billion revolving credit facility. In October 2020, we executed an exchange offer for the 2030 Notes that allowed the holders to exchange their unregistered notes for publicly registered notes. There was no change in the aggregate principal amount of the 2030 Notes as a result of the exchange offer. b) Notes Purchased or Redeemed All of our outstanding notes are redeemable at any time by repaying the greater of the principal amount and the present value of the sum of the remaining scheduled principal and interest amounts discounted at a comparable treasury yield plus a stipulated spread, plus, in each case, accrued interest to, but not including, the date of redemption. In addition, all of our outstanding notes, except for notes due October 2035, are callable at 100% (plus accrued interest to, but not including, the date of redemption) within three to six months of maturity. 18. Debt (continued) On January 18, 2022, we redeemed the 4.75% notes at maturity for US$150 million plus accrued interest. In 2020, we purchased US$268 million aggregate principal amount of our outstanding notes pursuant to cash tender offers and a private purchase, the latter of which had a US$13 million principal amount (2020 Tender Offer). T he purchased notes comprised US$104 million of 4.5% notes due 2021, US$52 million of 4.75% notes due 2022 and US$112 million of 3.75% notes due 2023. The total cost of the purchases, including the premium for the purchase, was US$276 million. We recorded a pre-tax expense of $11 million in non-operating income (expense) (Note 10) in connection with the 2020 Tender Offer. In 2020, we redeemed all of the outstanding 4.5% notes due 2021 that were not purchased as a part of the 2020 Tender Offer. The total cost of the redemption, including the premium, was US$13 million. c) QB2 Project Financing Facility As at December 31, 2021, US$2.3 billion was outstanding under the US$2.5 billion limited recourse QB2 project financing facility. Amounts drawn under the facility bear interest at LIBOR plus applicable margins that vary over time and will be repaid in 17 semi-annual instalments starting the earlier of six months after project completion or June 2023. The facility is guaranteed pre-completion on several basis by SMM/SC pro rata to the respective equity interests in the Series A shares of QBSA. The facility is secured by pledges of Teck’s and SMM/SC’s interests in QBSA and by security over QBSA’s assets, which consist primarily of QB2 project assets. d) Revolving Credit Facilities On October 15, 2021 , we converted our US$4.0 billion revolving credit facility into a sustainability-linked facility and extended its maturity to October 2026. The facility has pricing adjustments where the cost will increase, decrease or remain unchanged based on our sustainability performance. Our sustainability performance over the term of the facility is measured by non-financial variables that are specific to our greenhouse gas emissions intensity, the percentage of women in our workforce and our high-potential safety incidents. In addition, on October 15, 2021, we cancelled our US$1.0 billion facility that was scheduled to mature in June 2022. Any amounts drawn under the US$4.0 billion facility can be repaid at any time and are due in full at its maturity date. As at December 31, 2021, the facility was undrawn. Amounts outstanding under the facility bear interest at LIBOR plus an applicable margin based on credit ratings and our sustainability performance, as described above. This facility requires our total net debt-to-capitalization ratio, which was 0.22 to 1.0 at December 31, 2021, not exceed 0.60 to 1.0 (Note 31). This facility does not have an earnings or cash flow-based financial covenant, a credit rating trigger or a general material adverse effect borrowing condition. We maintain uncommitted bilateral credit facilities primarily for the issuance of letters of credit to support our future reclamation obligations. As at December 31, 2021, we had $2.1 billion of letters of credit outstanding. We also had $840 million in surety bonds outstanding at December 31, 2021 to support current and future reclamation obligations. e) Antamina Loan Agreements On July 12, 2021, Antamina entered into a US$1.0 billion loan agreement. Once fully drawn, our 22.5% share of the principal value of the loan will be US$225 million. As at December 31, 2021, our share of the amount drawn was US$158 million. Proceeds from the loan were used to repay existing credit facilities and to fund Antamina’s capital expenditure program. Amounts outstanding under this facility bear interest at LIBOR plus an applicable margin. The loan is non-recourse to us and the other Antamina owners and matures in 2026. On December 24, 2021 , Antamina entered into a US$80 million short-term loan agreement, which was repaid in January 2022. Our share of the amount drawn was US$18 million and the loan bore interest at 0.6%. 18. Debt (continued) f) Scheduled Principal Payments At December 31, 2021, scheduled principal payments during the next five years and thereafter are as follows: ($ in millions) US$ CAD$ 2022 $ 168 $ 213 2023 373 472 2024 265 336 2025 265 336 2026 422 536 Thereafter 4,413 5,594 $ 5,906 $ 7,487 g) Debt Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 4,913 $ 3,204 $ 6,255 $ 4,162 Cash flows Proceeds from debt 1,305 1,802 1,639 2,426 Redemption, purchase or repayment of debt (124) (338) (155) (457) Revolving credit facilities (262) 262 (335) 363 Non-cash changes Loss on debt redemption or purchase — 8 — 11 Changes in foreign exchange rates — — (10) (216) Finance fees and discount amortization (29) (29) (36) (39) Other 13 4 16 5 As at December 31 $ 5,816 $ 4,913 $ 7,374 $ 6,255 In conjunction with the subscription arrangement with SMM/SC, QBSA entered into a subordinated loan facility agreement with SMM/SC to advance QBSA up to US$1.3 billion. The advances are due to be repaid in full at maturity on January 15, 2038. Amounts outstanding under the facility bear interest at LIBOR plus an applicable margin. ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying QB2 Advances from SMM/SC $ 1,003 $ 1,288 $ 1,263 $ 739 $ 941 $ 934 The fair value of the advances is determined using discounted cash flows based on our cost of borrowing. This is considered a Level 2 fair value measurement with significant observable inputs on the fair value hierarchy (Note 30). a) QB2 Advances from SMM/SC Carrying Value Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 734 $ 702 $ 934 $ 912 Cash flows Advances 262 31 326 41 Non-cash changes Finance fee amortization 1 1 1 1 Changes in foreign exchange rates — — 2 (20) As at December 31 $ 997 $ 734 $ 1,263 $ 934 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | Income Taxes a) Tax rate reconciliation to the Canadian statutory income tax rate (CAD$ in millions) 2021 2020 Tax expense (recovery) at the Canadian statutory income tax rate of 26.54% (2020 – 26.58%) $ 1,203 $ (302) Tax effect of: Resource taxes 426 106 Resource and depletion allowances (61) (68) Non-deductible expenses (non-taxable income) 69 28 Tax pools not recognized (recognition of previously unrecognized tax pools) (56) 5 Withholding taxes on foreign earnings 60 40 Difference in tax rates in foreign jurisdictions 15 1 Revisions to prior year estimates (14) (4) Non-controlling interests (15) (2) Other (10) 4 Total income taxes $ 1,617 $ (192) Represented by: Current income taxes $ 978 $ 374 Deferred income taxes 639 (566) Total income taxes $ 1,617 $ (192) b) Continuity of deferred tax assets and liabilities (CAD$ in millions) January 1, 2021 Through Profit (Loss) Through OCI December 31, 2021 Net operating loss and capital loss carryforwards $ 247 $ (106) $ — $ 141 Property, plant and equipment (168) (12) — (180) Decommissioning and restoration provisions 158 32 — 190 Other temporary differences 34 (19) (5) 10 Deferred income tax assets $ 271 $ (105) $ (5) $ 161 Net operating loss and capital loss carryforwards $ (1,038) $ 503 $ 3 $ (532) Property, plant and equipment 7,369 176 1 7,546 Decommissioning and restoration provisions (962) (86) (2) (1,050) Unrealized foreign exchange (88) 1 2 (85) Withholding taxes 95 6 (1) 100 Inventories 110 47 (1) 156 Other temporary differences (103) (113) 54 (162) Deferred income tax liabilities $ 5,383 $ 534 $ 56 $ 5,973 21. Income Taxes (continued) (CAD$ in millions) January 1, 2020 Through Profit (Loss) Through OCI December 31, 2020 Net operating loss and capital loss carryforwards $ 190 $ 57 $ — $ 247 Property, plant and equipment (144) (22) (2) (168) Decommissioning and restoration provisions 123 35 — 158 Other temporary differences 42 (13) 5 34 Deferred income tax assets $ 211 $ 57 $ 3 $ 271 Net operating loss and capital loss carryforwards $ (642) $ (408) $ 12 $ (1,038) Property, plant and equipment 7,101 294 (26) 7,369 Decommissioning and restoration provisions (637) (327) 2 (962) Unrealized foreign exchange (116) 11 17 (88) Withholding taxes 91 6 (2) 95 Inventories 91 19 — 110 Other temporary differences 14 (104) (13) (103) Deferred income tax liabilities $ 5,902 $ (509) $ (10) $ 5,383 c) Deferred Tax Assets and Liabilities Not Recognized We have not recognized $293 million (2020 – $296 million) of deferred tax assets associated with unused tax credits and tax pools in entities and jurisdictions that do not have established sources of taxable income. The majority of these unused tax credits and tax pools do not expire. Deferred tax liabilities of approximately $803 million (2020 – $731 million) have not been recognized on the unremitted foreign earnings associated with investments in subsidiaries and interests in joint arrangements where we control the timing of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. d) Loss Carryforwards At December 31, 2021, we had $1.16 billion (2020 – $3.81 billion) of Canadian net operating loss carryforwards, which expire at various dates between 2029 and 2041, and $972 million (2020 – $847 million) of Chilean net operating losses with an indefinite carryforward period. The deferred tax benefit of these pools has been recognized. e) Scope of Antamina’s Peruvian Tax Stability Agreement In prior years, the Peruvian tax authority, La Superintendencia Nacional de Aduanas y de Administración Tributaria (SUNAT) issued income tax assessments for the 2013 and 2014 taxation years to Antamina (our joint operation in which we own a 22.5% share), denying accelerated depreciation claimed by Antamina in respect of a mill expansion and other assets, on the basis that the expansion was not covered by Antamina’s tax stability agreement. Antamina objected to the assessments, but lost its appeal with SUNAT. In 2021, SUNAT issued their assessment on this matter for the 2015 taxation year on the same basis as for the previous two taxation years. The issue also affects the 2016 and 2017 taxation years and we expect that it will be raised by SUNAT in respect of those years as well. Antamina is pursuing the issue in the Peruvian courts. However, based on opinions of counsel, we have provided for the tax on this issue for all years possibly affected. The denial of accelerated depreciation claimed is a timing issue in our tax provision. |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits [Abstract] | |
Retirement Benefit Plans | Retirement Benefit Plans We have defined contribution pension plans for certain groups of employees. Our share of contributions to these plans is expensed in the year earned by employees. We have multiple defined benefit pension plans registered in various jurisdictions that provide benefits based principally on employees’ years of service and average annual remuneration. These plans are only available to certain qualifying employees and some are now closed to additional members. The plans are “flat-benefit” or “final-pay” plans and may provide for inflationary increases in accordance with certain plan provisions. All of our registered defined benefit pension plans are governed and administered in accordance with applicable pension legislation in either Canada or the United States. Actuarial valuations are performed at least every three years to determine minimum annual contribution requirements as prescribed by applicable legislation. For the majority of our plans, current service costs are funded based on a percentage of pensionable earnings or as a flat dollar amount per active member depending on the provisions of the pension plans. Actuarial deficits are funded in accordance with minimum funding regulations in each applicable jurisdiction. All of our defined benefit pension plans were actuarially valued within the past three years. While the majority of benefit payments are made from registered held-in-trust funds, there are also several unregistered and unfunded plans where benefit payment obligations are met as they fall due. We also have several post-retirement benefit plans that provide post-retirement medical, dental and life insurance benefits to certain qualifying employees and surviving spouses. These plans are unfunded and we meet benefit obligations as they come due. 22. Retirement Benefit Plans (continued) a) Actuarial Valuation of Plans (CAD$ in millions) 2021 2020 Defined Non-Pension Defined Non-Pension Defined benefit obligation Balance at beginning of year $ 2,558 $ 445 $ 2,337 $ 404 Current service cost 72 14 55 19 Past service costs arising from plan improvements 13 3 — — Benefits paid (144) (14) (146) (17) Interest expense 59 11 69 13 Obligation experience adjustments 4 (13) 27 (3) Effect from change in financial assumptions (159) (24) 221 33 Effect from change in demographic assumptions 4 3 1 (3) Changes in foreign exchange rates — (5) (6) (1) Balance at end of year 2,407 420 2,558 445 Fair value of plan assets Fair value at beginning of year 2,812 — 2,659 — Interest income 66 — 79 — Return on plan assets, excluding amounts included 102 — 204 — Benefits paid (144) (14) (146) (17) Contributions by the employer 22 14 21 17 Changes in foreign exchange rates — — (5) — Fair value at end of year 2,858 — 2,812 — Funding surplus (deficit) 451 (420) 254 (445) Less effect of the asset ceiling Balance at beginning of year 72 — 63 — Interest on asset ceiling 2 — 2 — Change in asset ceiling 25 — 7 — Balance at end of year 99 — 72 — Net accrued retirement benefit asset (liability) $ 352 $ (420) $ 182 $ (445) Represented by: Pension assets (Note 13) $ 449 $ — $ 301 $ — Accrued retirement benefit liability (97) (420) (119) (445) Net accrued retirement benefit asset (liability) $ 352 $ (420) $ 182 $ (445) A number of the plans have a surplus totaling $99 million at December 31, 2021 (2020 – $72 million), which is not recognized on the basis that future economic benefits are not available to us in the form of a reduction in future contributions or a cash refund. 22. Retirement Benefit Plans (continued) We expect to contribute $20 million to our defined benefit pension plans in 2022 based on minimum funding requirements. The weighted average duration of the defined benefit pension obligation is 15 years and the weighted average duration of the non-pension post-retirement benefit obligation is 15 years. Defined contribution expense for 2021 was $52 million (2020 – $50 million). b) Significant Assumptions The discount rate used to determine the defined benefit obligations and the net interest cost was determined by reference to the market yields on high-quality debt instruments at the measurement date with durations similar to the duration of the expected cash flows of the plans. Weighted average assumptions used to calculate the defined benefit obligation at the end of each year are as follows: 2021 2020 Defined Non-Pension Defined Non-Pension Discount rate 2.88 % 2.96 % 2.39 % 2.50 % Rate of increase in future compensation 3.25 % 3.25 % 3.25 % 3.25 % Medical trend rate — 5.00 % — 5.00 % c) Sensitivity of the Defined Benefit Obligation to Changes in the Weighted Average Assumptions 2021 Effect on Defined Benefit Obligation Change in Increase in Decrease in Discount rate 1.0 % Decrease by 13% Increase by 15% Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1% Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1% 2020 Effect on Defined Benefit Obligation Change in Increase in Decrease in Discount rate 1.0 % Decrease by 12% Increase by 14% Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1% Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1% The above sensitivity analyses are based on a change in each actuarial assumption while holding all other assumptions constant. The sensitivity analyses on our defined benefit obligation are calculated using the same methods as those used for calculating the defined benefit obligation recognized on our balance sheet. The methods and types of assumptions used in preparing the sensitivity analyses did not change from the prior period. 22. Retirement Benefit Plans (continued) d) Mortality Assumptions Assumptions regarding future mortality are set based on management’s best estimate in accordance with published mortality tables and expected experience. These assumptions translate into the following average life expectancies for an employee retiring at age 65: 2021 2020 Male Female Male Female Retiring at the end of the reporting period 85.3 years 87.7 years 85.3 years 87.7 years Retiring 20 years after the end of the reporting period 86.4 years 88.7 years 86.4 years 88.7 years e) Significant Risks The defined benefit pension plans and post-retirement benefit plans expose us to a number of risks, the most significant of which include asset volatility risk, changes in bond yields and any changes in life expectancy. Asset volatility risk The discount rate used to determine the defined benefit obligations is based on AA-rated corporate bond yields. If our plan assets underperform this yield, the deficit will increase. Our strategic asset allocation includes a significant proportion of equities that increases volatility in the value of our assets, particularly in the short term. We expect equities to outperform corporate bonds in the long term. Changes in bond yields A decrease in bond yields increases plan liabilities, which are partially offset by an increase in the value of the plans’ bond holdings. Life expectancy The majority of the plans’ obligations are to provide benefits for the life of the member. Increases in life expectancy will result in an increase in the plans’ liabilities. f) Investment of Plan Assets The assets of our defined benefit pension plans are managed by external asset managers under the oversight of the Teck Resources Limited Executive Pension Committee. Our pension plan investment strategies support the objectives of each defined benefit plan and are related to each plan’s demographics and timing of expected benefit payments to plan members. The objective for the plan asset portfolios is to achieve annualized portfolio returns over five-year periods in excess of the annualized percentage change in the Consumer Price Index plus a certain premium. Strategic asset allocation policies have been developed for each defined benefit plan to achieve this objective. The policies also reflect an asset/liability matching framework that seeks to reduce the effect of interest rate changes on each plan’s funded status by matching the duration of the bond investments with the duration of the pension liabilities. We do not use derivatives to manage interest rate risk. Asset allocation is monitored at least quarterly and rebalanced if the allocation to any asset class exceeds its allowable allocation range. Portfolio and investment manager performance is monitored quarterly and the investment guidelines for each plan are reviewed at least annually. 22. Retirement Benefit Plans (continued) The defined benefit pension plan assets at December 31, 2021 and 2020 are as follows: (CAD$ in millions) 2021 2020 Quoted Unquoted Total % Quoted Unquoted Total % Equity securities $ 1,069 $ — 37 % $ 1,058 $ — 38 % Debt securities $ 1,389 $ — 49 % $ 1,385 $ — 49 % Real estate and other $ 71 $ 329 14 % $ 62 $ 307 13 % |
Provisions and Other Liabilitie
Provisions and Other Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Provisions and Other Liabilities | . Provisions and Other Liabilities (CAD$ in millions) December 31, December 31, Decommissioning and restoration provisions and other provisions (a) $ 3,813 $ 3,484 Obligation to Neptune Bulk Terminals (b) 170 111 Derivative liabilities (net of current portion of $9 (2020 – $6)) 51 26 ENAMI preferential dividend liability (Note 10(a)) 78 30 QB2 variable consideration to IMSA (Note 10(a)) 98 — Other IMSA payable 61 60 Other liabilities 83 20 $ 4,354 $ 3,731 a) Decommissioning and Restoration Provisions and Other Provisions The following table summarizes the movements in provisions for the year ended December 31, 2021: (CAD$ in millions) Decommissioning and Other Provisions Total As at January 1, 2021 $ 3,342 $ 315 $ 3,657 Settled during the year (90) (38) (128) Change in discount rate 322 — 322 Change in amount and timing of cash flows 2 75 77 Accretion (Note 9) 151 4 155 Other (4) (56) (60) Changes in foreign exchange rates 2 (2) — As at December 31, 2021 3,725 298 4,023 Less current portion of provisions (Note 17) (144) (66) (210) Long-term provisions $ 3,581 $ 232 $ 3,813 During the year ended December 31, 2021, we recorded $73 million (2020 – $101 million) of additional study and environmental costs arising from legal obligations through other provisions. 23. Provisions and Other Liabilities (continued) Decommissioning and Restoration Provisions The decommissioning and restoration provisions represent the present value of estimated costs for required future decommissioning and other site restoration activities. These activities include removal of site structures and infrastructure, recontouring and revegetation of previously mined areas and the management of water and water quality in and around each closed site. The majority of the decommissioning and site restoration expenditures occur near the end of, or after, the life of the related operation. After the end of the life of certain operations, water quality management costs may extend for periods in excess of 100 years. Our provision for these expenditures was $1.3 billion as at December 31, 2021 (2020 – $1.2 billion) , of which $769 million (2020 – $673 million) rel ates to our steelmaking coal business unit. For our steelmaking coal operations, the current and future requirements for water quality management are established under a regional permit issued by the provincial government of British Columbia. This permit references the Elk Valley Water Quality Plan (EVWQP). In October 2020, Environment and Climate Change Canada issued a Direction under the Fisheries Act (the Direction) requiring us to undertake certain additional measures to address water quality and fish habitat impacts in the upper Fording River and certain tributaries, and stipulating deadlines for implementation of certain measures contemplated by the EVWQP. The Direction does not require construction of any additional water treatment facilities beyond those already contemplated by the EVWQP, but sets out requirements with respect to water management such as diversions, mine planning, fish monitoring and calcite prevention measures, as well as the installation by December 31, 2030, of a 200-hectare geosynthetic cover trial in the Greenhills creek drainage. Certain of the measures in the Direction, including the cover trial, will require incremental spending beyond that already associated with the EVWQP. The estimated costs of the Direction have been included in our decommissioning and restoration provisions as at December 31, 2021 and 2020. In 2021, the decommissioning and restoration provisions were calculated using nominal discount rates between 3.86% and 5.35% (2020 – 4.05% and 5.85%). We also used an inflation rate of 2.00% (2020 – 2.00%) in our cash flow estimates. Total decommissioning and restoration provisions include $721 million (2020 – $712 million) in respect of closed operations. b) Obligation to Neptune Bulk Terminals Through our cost of services agreement with Neptune Bulk Terminals Inc. (Neptune), we owe amounts to Neptune for any loans entered into by Neptune that are specifically related to funding the assets of our steelmaking coal loading and handling operations. The carrying value of this obligation approximates fair value based on prevailing market interest rates in effect at December 31, 2021. This is considered a Level 2 fair value measurement with significant other observable inputs on the fair value hierarchy (Note 30). The current portion of this obligation is recorded as part of trade accounts payable and other liabilities. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
Equity | Equity a) Authorized Share Capital Our authorized share capital consists of an unlimited number of Class A common shares without par value, an unlimited number of Class B subordinate voting shares without par value and an unlimited number of preferred shares without par value issuable in series. Class A common shares carry the right to 100 votes per share. Class B subordinate voting shares carry the right to one vote per share. Each Class A common share is convertible, at the option of the holder, into one Class B subordinate voting share. In all other respects, the Class A common shares and Class B subordinate voting shares rank equally. 24. Equity (continued) The attributes of the Class B subordinate voting shares contain so-called “coattail provisions,” which provide that, in the event that an offer (an “Exclusionary Offer”) to purchase Class A common shares, which is required to be made to all or substantially all holders thereof, is not made concurrently with an offer to purchase Class B subordinate voting shares on identical terms, then each Class B subordinate voting share will be convertible into one Class A common share at the option of the holder during a certain period, provided that any Class A common shares received upon such conversion are deposited to the Exclusionary Offer. Any Class B subordinate voting shares converted into Class A common shares pursuant to such conversion right will automatically convert back to Class B subordinate voting shares in the event that any such shares are withdrawn from the Exclusionary Offer or are not otherwise ultimately taken up and paid for under the Exclusionary Offer. The Class B subordinate voting shares will not be convertible in the event that holders of a majority of the Class A common shares (excluding those shares held by the offeror making the Exclusionary Offer) certify to Teck that they will not, among other things, tender their Class A common shares to the Exclusionary Offer. If an offer to purchase Class A common shares does not, under applicable securities legislation or the requirements of any stock exchange having jurisdiction, constitute a “take-over bid” or is otherwise exempt from any requirement that such offer be made to all or substantially all holders of Class A common shares, the coattail provisions will not apply. b) Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding Shares (in 000’s) Class A Class B Subordinate Voting As at January 1, 2020 7,765 539,528 Shares issued on options exercised (c) — 145 Acquired and cancelled pursuant to normal course issuer bid (h) — (16,292) As at December 31, 2020 7,765 523,381 Shares issued on options exercised (c) — 3,067 As at December 31, 2021 7,765 526,448 c) Share Options The maximum number of Class B subordinate voting shares issuable to full-time employees pursuant to options granted under our current stock option plan is 46 million. As at December 31, 2021, 12,187,148 share options remain available for grant. The exercise price for each option is the closing price for our Class B subordinate voting shares on the last trading day before the date of grant. Our share options are settled through the issuance of Class B subordinate voting shares. During the year ended December 31, 2021, we granted 2,519,455 share options to employees. These share options have a weighted average exercise price of $29.04, vest in equal amounts over three years and have a term of 10 years. The weighted average fair value of share options granted in the year was estimated at $10.83 per option (2020 – $4.76) at the grant date based on the Black-Scholes option-pricing model using the following assumptions: 2021 2020 Weighted average exercise price $ 29.04 $ 14.42 Dividend yield 0.69 % 2.13 % Risk-free interest rate 0.75 % 1.19 % Expected option life 6.3 years 6.1 years Expected volatility 40 % 41 % Forfeiture rate 0.78 % 1.16 % 24. Equity (continued) The expected volatility is based on a statistical analysis of historical daily share prices over a period equal to the expected option life. Outstanding share options are as follows: 2021 2020 Share Weighted Share Weighted Outstanding at beginning of year 25,250 $ 20.61 20,152 $ 23.02 Granted 2,519 29.04 6,314 14.42 Exercised (3,189) 16.03 (156) 8.33 Forfeited (186) 25.43 (293) 20.97 Expired (714) 52.86 (767) 35.14 Outstanding at end of year 23,680 $ 21.12 25,250 $ 20.61 Vested and exercisable at end of year 16,543 $ 21.29 17,368 $ 21.76 The average share price during the year was $29.25 (2020 – $16.15). Information relating to share options outstanding at December 31, 2021, is as follows: Outstanding Share Options (in 000’s) Exercise Weighted Average Remaining Life 4,096 $5.34 — $13.57 49 4,876 $13.58 — $14.71 98 5,406 $14.72 — $26.53 43 5,700 $26.54 — $29.43 88 3,602 $29.44 — $39.90 36 23,680 $5.34 — $39.90 65 Total share option compensation expense recognized for the year was $28 million (2020 – $23 million). d) Deferred Share Units, Restricted Share Units, Performance Share Units and Performance Deferred Share Units We have issued and outstanding deferred share units (DSUs), restricted share units (RSUs), performance share units (PSUs) and performance deferred share units (PDSUs) (collectively, Units). As of 2017, DSUs are granted to directors only. RSUs may be granted to both employees and directors. PSUs and PDSUs are granted to certain officers only. DSUs entitle the holder to a cash payment equal to the closing price of one Class B subordinate voting share on the Toronto Stock Exchange on the day prior to redemption. RSUs entitle the holder to a cash payment equal to the weighted average trading price of one Class B subordinate voting share on the Toronto Stock Exchange over 20 consecutive trading days prior to the payout date. PSUs and PDSUs issued in 2017 and later vest in a percentage from 0% to 200% based on both relative total shareholder return as compared to our compensation peer group and a calculation based on the change in EBITDA over the vesting period divided by the change in a weighted commodity price index. Once vested, PSUs and PDSUs entitle the holder to a cash payment equal to the weighted average trading price of one Class B subordinate voting share on the Toronto Stock Exchange over 20 consecutive trading days prior to the payout date. Officers granted PSUs in 2017 and later can elect to receive up to 50% of their Units as PDSUs, which pay out following termination of employment as described below. 24. Equity (continued) PSUs and PDSUs vest on December 20 in the year prior to the third anniversary of the grant date. RSUs vest on various dates depending on the grant date. DSUs granted to directors vest immediately. Units vest on a pro rata basis if employees retire or are terminated without cause and unvested units are forfeited if employees resign or are terminated with cause. DSUs and PDSUs may be redeemed on or before December 15 of the first calendar year commencing after the date on which the participant ceases to be a director or employee. RSUs and PSUs pay out on the vesting date. Additional Units are issued to Unit holders to reflect dividends paid and other adjustments to Class B subordinate voting shares. In 2021, we recognized compensation expense of $97 million for Units (2020 – $24 million expense). The total liability and intrinsic value for vested Units as at December 31, 2021 was $160 million (2020 – $83 million). The outstanding Units are summarized in the following table: (in 000’s) 2021 2020 Outstanding Vested Outstanding Vested DSUs 2,526 2,526 2,555 2,555 RSUs 2,707 — 1,408 — PSUs 1,622 — 1,449 — PDSUs 185 67 213 70 7,040 2,593 5,625 2,625 e) Accumulated Other Comprehensive Income (CAD$ in millions) 2021 2020 Accumulated other comprehensive income – beginning of year $ 247 $ 309 Currency translation differences: Unrealized losses on translation of foreign subsidiaries (50) (197) Foreign exchange differences on debt designated as a hedge of our investment in foreign subsidiaries (net of taxes of $(2) and $(17)) (Note 29(b)) 11 111 (39) (86) Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(3)) (6) 24 Remeasurements of retirement benefit plans (net of taxes of $(91) and $29) 171 (50) Total other comprehensive income (loss) 126 (112) Less remeasurements of retirement benefit plans recorded in retained earnings (171) 50 Accumulated other comprehensive income – end of year $ 202 $ 247 24. Equity (continued) f) Earnings (Loss) Per Share The following table reconciles our basic and diluted earnings (loss) per share: (CAD$ in millions, except per share data) 2021 2020 Net basic and diluted profit (loss) attributable to shareholders of the company $ 2,868 $ (864) Weighted average shares outstanding (000’s) 532,340 534,378 Dilutive effect of share options 7,931 — Weighted average diluted shares outstanding (000’s) 540,271 534,378 Basic earnings (loss) per share $ 5.39 $ (1.62) Diluted earnings (loss) per share $ 5.31 $ (1.62) At December 31, 2021, 7,700,774 potentially dilutive shares were not included in the diluted earnings per share calculation because their effect was anti-dilutive. For the year ended December 31, 2020, there was a net loss attributable to shareholders of the company and, accordingly, all share options were considered anti-dilutive and were excluded from the calculation of diluted earnings (loss) per share. At December 31, 2020, the weighted average shares outstanding and weighted average diluted shares outstanding were therefore the same. g) Dividends We declared and paid dividends on our Class A common and Class B subordinate voting shares of $0.05 per share in each quarter of 2021 and 2020. During the year ended December 31, 2021, we declared and paid a total of $106 million (2020 – $106 million). On February 23, 2022, we declared a dividend on our Class A common and Class B subordinate voting shares of $0.625 per share to be paid on March 31, 2022 to shareholders of record at the close of business on March 15, 2022. h) Normal Course Issuer Bid On occasion, we purchase and cancel Class B subordinate voting shares pursuant to normal course issuer bids that allow us to purchase up to a specified maximum number of shares over a one-year period. In October 2021, we renewed our regulatory approval to conduct a normal course issuer bid, under which we may purchase up to 40 million Class B subordinate voting shares during the period from November 2, 2021 to November 1, 2022. All repurchased shares will be cancelled. There were no purchases and no cancellations of Class B subordinate voting shares in 2021. In 2020, we purchased and cancelled 16,292,441 Class B subordinate voting shares under our normal course issuer bid for $207 million. |
Non-Controlling Interests
Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Non-Controlling Interests | Non-Controlling Interests Set out below is information about our subsidiaries with non-controlling interests and the non-controlling interest balances included in equity. (CAD$ in millions) Principal Place of Percentage of Ownership December 31, December 31, Carmen de Andacollo Region IV, Chile 10 % $ 24 $ 26 Quebrada Blanca (a) Region I, Chile 40 % 612 526 Elkview Mine Limited Partnership British Columbia, 5 % 86 74 Compañía Minera Arequipa Region, 20 % 46 43 $ 768 $ 669 25. Non-Controlling Interests (continued) a) Quebrada Blanca The non-controlling interest in QBSA, the entity that owns QB2, consists of SMM/SC, who subscribed for a 30% indirect interest in QBSA in 2019, and ENAMI, a Chilean state-owned agency that holds a 10% preference share interest. ENAMI’s interest in QBSA does not require ENAMI to make contributions toward QBSA’s capital spending. The following is the summarized financial information for Quebrada Blanca before intra-group eliminations. Quebrada Blanca has non-controlling interests that are considered material to our consolidated financial statements. (CAD$ in millions) December 31, 2021 December 31, 2020 Summarized balance sheet Current assets $ 166 $ 221 Current liabilities 731 698 Current net assets (565) (477) Non-current assets 11,699 8,575 Non-current liabilities 7,328 4,841 Non-current net assets 4,371 3,734 Net assets $ 3,806 $ 3,257 Accumulated non-controlling interests $ 612 $ 526 Summarized statement of comprehensive income (loss) Revenue $ 136 $ 116 Loss for the period (182) (291) Other comprehensive income (loss) (10) (47) Total comprehensive income (loss) $ (192) $ (338) Loss allocated to non-controlling interests $ (20) $ (95) Summarized cash flows Cash flows from operating activities $ (516) $ (442) Cash flows from investing activities (2,597) (1,657) Cash flows from financing activities 3,117 1,668 Effect of exchange rates on cash and cash equivalents 2 8 Net increase (decrease) in cash and cash equivalents $ 6 $ (423) |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of contingent liabilities [abstract] | |
Contingencies | Contingencies We consider provisions for all of our outstanding and pending legal claims to be adequate. The final outcome with respect to actions outstanding or pending as at December 31, 2021, or with respect to future claims, cannot be predicted with certainty. Significant contingencies not disclosed elsewhere in the notes to our financial statements are as follows: Upper Columbia River Basin Teck American Inc. (TAI) continues studies under the 2006 settlement agreement with the U.S. Environmental Protection Agency (EPA) to conduct a remedial investigation on the Upper Columbia River in Washington State. The Lake Roosevelt litigation involving TML in the Federal District Court for the Eastern District of Washington continues. In December 2012 on the basis of stipulated facts agreed between TML and the plaintiffs, the Court found in favour of the plaintiffs in phase one of the case, issuing a declaratory judgment that TML is liable under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) for response costs, the amount of which will be determined in later phases of the case. TML has exhausted its appeal rights in respect of that decision. The case relates to historic discharges of slag and effluent from TML’s Trail metallurgical facility to the Upper Columbia River. As a consequence of a ruling of the Ninth Circuit Court of Appeals, alleged damages associated with air emissions from the Trail facility are no longer part of the case. A hearing with respect to natural resource damages and assessment costs is expected to follow completion of the remedial investigation and feasibility study being undertaken by TAI. Until the studies contemplated by the EPA settlement agreement and additional damage assessments are completed, it is not possible to estimate the extent and cost, if any, of any additional remediation or restoration that may be required or to assess the extent of our potential liability for damages. The studies may conclude, on the basis of risk, cost, technical feasibility or other grounds, that no remediation other than some residential soil removal should be undertaken. If other remediation is required and damage to resources found, the cost of that remediation may be material. Elk Valley Water Quality In the first quarter of 2021, Teck Coal Limited (TCL) pleaded guilty in relation to two counts charging offences under s.36(3) of the Fisheries Act |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of Commitments [abstract] | |
Commitments | Commitments a) Capital Commitments As at December 31, 2021, we had contracted for $1.33 billion of capital expenditures that have not yet been incurred for the purchase and construction of property, plant and equipment. This amount includes $1.1 billion for QB2, $67 million for our steelmaking coal operations and $113 million for our 22.5% share of Antamina. The amount includes $1.27 billion that is expected to be incurred within one year and $62 million within two to five years. b) Red Dog Royalty In accordance with the operating agreement governing the Red Dog mine, TAK pays a royalty to NANA Regional Corporation, Inc. (NANA) on the net proceeds of production. A 25% royalty became payable in the third quarter of 2007 after we had recovered cumulative advance royalties previously paid to NANA. The net proceeds of production royalty rate will increase by 5% every fifth year to a maximum of 50%. The increase to 35% of net proceeds of production occurred in the fourth quarter of 2017. An expense of US$255 million was recorded in 2021 (2020 – US$175 million) in respect of this royalty. The NANA royalty is expected to increase another 5% to 40% in the fourth quarter of 2022. c) Antamina Royalty Our interest in the Antamina mine is subject to a net profits royalty equivalent to 7.4% of our share of the mine’s free cash flow. An expense of $50 million was recorded in 2021 (2020 – $27 million) in respect of this royalty. d) Purchase Commitments We have a number of forward purchase commitments for the purchase of concentrates and other process inputs and for shipping and distribution of products, which are incurred in the normal course of business. The majority of these contracts are subject to force majeure provisions. In 2021, we entered into an 18-year contractual arrangement to purchase power for our Quebrada Blanca Operations starting in 2022. This arrangement requires payments of approximately $277 million per year. In 2020, we entered into a 14-year contractual arrangement to purchase power for our Carmen de Andacollo Operations. This arrangement requires payments of approximately $52 million per year. In 2018, we entered into a 20-year contractual arrangement to purchase power for our Trail Operations, with an option to extend for a further 10 years. This arrangement requires payments of approximately $75 million per year, escalating at 2% per year. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2021 | |
Operating Segments [Abstract] | |
Segmented Information | Segmented Information Based on the primary products we produce and our development projects, we have five reportable segments that we report to our Chief Executive Officer – copper, zinc, steelmaking coal, energy and corporate. The corporate segment includes all of our initiatives in other commodities, our corporate growth activities and groups that provide administrative, technical, financial and other support to all of our business units. Other operating income (expenses) include general and administration, exploration, research and innovation and other operating income (expense). Sales between segments are carried out on terms that arm’s-length parties would use. Total assets do not include intra-group receivables between segments. Deferred tax assets have been allocated among segments. (CAD$ in millions) December 31, 2021 Copper Zinc Steelmaking Coal Energy Corporate Total Segment revenue $ 3,452 $ 3,574 $ 6,251 $ 715 $ — $ 13,992 Less intra-segment revenue — (511) — — — (511) Revenue (Note 5(a)) 3,452 3,063 6,251 715 — 13,481 Cost of sales (1,711) (2,375) (3,466) (848) — (8,400) Gross profit (loss) 1,741 688 2,785 (133) — 5,081 Impairment reversal (Note 7(a)) 215 — — — — 215 Other operating income (expense) (14) (41) 153 (21) (523) (446) Profit (loss) from operations 1,942 647 2,938 (154) (523) 4,850 Net finance income (expense) (116) (47) (91) (26) 70 (210) Non-operating income (expense) (137) 4 — — 28 (105) Share of loss of associates and joint ventures (3) — — — — (3) Profit (loss) before taxes 1,686 604 2,847 (180) (425) 4,532 Capital expenditures 3,074 259 1,284 83 13 4,713 Goodwill (Note 16) 389 — 702 — — 1,091 Total assets $ 18,077 $ 4,401 $ 18,390 $ 2,704 $ 3,796 $ 47,368 (CAD$ in millions) December 31, 2020 Copper Zinc Steelmaking Coal Energy Corporate Total Segment revenue $ 2,419 $ 3,164 $ 3,375 $ 454 $ — $ 9,412 Less intra-segment revenue — (464) — — — (464) Revenue (Note 5(a)) 2,419 2,700 3,375 454 — 8,948 Cost of sales (1,560) (2,177) (3,098) (780) — (7,615) Gross profit (loss) 859 523 277 (326) — 1,333 Asset impairment (Note 7(a)) — — — (1,244) — (1,244) Other operating expenses (323) (98) (193) (28) (357) (999) Profit (loss) from operations 536 425 84 (1,598) (357) (910) Net finance income (expense) (151) (44) (56) (26) 9 (268) Non-operating income (expense) 38 (4) 13 — (4) 43 Share of gain (loss) of associates and joint ventures 1 — — — (2) (1) Profit (loss) before taxes 424 377 41 (1,624) (354) (1,136) Capital expenditures 1,990 247 1,284 91 16 3,628 Goodwill (Note 16) 391 — 702 — — 1,093 Total assets $ 14,546 $ 4,006 $ 17,266 $ 2,658 $ 2,802 $ 41,278 28. Segmented Information (continued) The geographical distribution of our non-current assets, other than financial instruments, deferred tax assets and post-employment benefit assets, is as follows: (CAD$ in millions) December 31, December 31, Canada $ 22,949 $ 22,410 Chile 13,771 10,555 United States 1,788 1,710 Peru 1,597 1,483 Other 162 157 $ 40,267 $ 36,315 |
Financial Instruments and Finan
Financial Instruments and Financial Risk Management | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Financial Instruments and Financial Risk Management | Financial Instruments and Financial Risk Management a) Financial Risk Management Our activities expose us to a variety of financial risks, which include foreign exchange risk, liquidity risk, interest rate risk, commodity price risk, credit risk and other risks associated with capital markets. From time to time, we may use foreign exchange, commodity price and interest rate contracts to manage exposure to fluctuations in these variables. Our use of derivatives is based on established practices and parameters to mitigate risk and is subject to the oversight of our Financial Risk Management Committee and our Board of Directors. Foreign Exchange Risk We operate on an international basis, and therefore, foreign exchange risk exposures arise from transactions denominated in a currency other than the functional currency of the entity. Our foreign exchange risk arises primarily with respect to the U.S. dollar, Chilean peso and Peruvian sol. Our cash flows from Canadian, Chilean and Peruvian operations are exposed to foreign exchange risk, as commodity sales are denominated in U.S. dollars and a substantial portion of operating expenses is denominated in local currencies. We also have various investments in U.S. dollar functional currency subsidiaries, whose net assets are exposed to foreign currency translation risk. This currency exposure is managed in part through our U.S. dollar denominated debt as a hedge against these net investments. U.S. dollar financial instruments subject to foreign exchange risk consist of U.S. dollar denominated items held in Canada and are summarized below. (US$ in millions) December 31, December 31, Cash and cash equivalents $ 664 $ 23 Trade and settlement receivables 1,042 616 Trade accounts payable and other liabilities (703) (608) Debt (3,479) (3,741) Reduced by: Debt designated as a hedging instrument in our net investment hedge 2,697 3,575 Net U.S. dollar exposure $ 221 $ (135) As at December 31, 2021, with other variables unchanged, a $0.10 strengthening of the Canadian dollar against the U.S. dollar would result in a $17 million pre-tax loss (2020 – $18 million pre-tax gain) from our financial instruments. There would also be a $582 million pre-tax loss (2020 – $415 million) in other comprehensive income (loss) from the translation of our foreign operations. The inverse effect would result if the Canadian dollar weakened by $0.10 against the U.S. dollar. 29. Financial Instruments and Financial Risk Management (continued) Liquidity Risk Liquidity risk arises from our general and capital funding requirements. We have planning, budgeting and forecasting processes to help determine our funding requirements to meet various contractual and other obligations. Note 18(d) details our available credit facilities as at December 31, 2021. Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2021 are as follows: (CAD$ in millions) Less Than 2–3 4–5 More Than Total Trade accounts payable and other liabilities $ 3,045 $ — $ — $ — $ 3,045 Debt (Note 18(f)) 213 808 872 5,594 7,487 Lease liabilities 154 191 172 611 1,128 Obligation to Neptune Bulk Terminals — 26 144 — 170 ENAMI preferential dividend liability — 43 16 46 105 QB2 advances from SMM/SC — — — 1,271 1,271 QB2 variable consideration to IMSA — 63 63 — 126 Other liabilities — 139 56 37 232 Estimated interest payments on debt 277 623 601 2,907 4,408 Estimated interest payments on QB2 advances — — — 1,753 1,753 Estimated interest payments on lease and other 16 24 12 30 82 During the year ended December 31, 2021, we entered into a receivable factoring facility for metal concentrate sales, where from time to time we are able to factor specified invoices . In addition, we also have a receivable factoring facility for steelmaking coal sales, which was entered into during the year ended December 31, 2020. The counterparty to these arrangements has discretion to determine the amount of invoices it factors under the arrangements. The derecognition criteria is met for these receivables upon execution of the transaction. Interest Rate Risk Our interest rate risk arises in respect of our holdings of cash, cash equivalents and floating rate debt. Our interest rate management policy is to borrow at both fixed and floating rates to offset financial risks. Cash and cash equivalents have short terms to maturity and receive interest based on market interest rates. A 1% increase in the short-term interest rate at the beginning of the year, with other variables unchanged, would have resulted in a $1 million pre-tax decrease in our profit (loss) (2020 – $4 million). There would be no effect on other comprehensive income (loss). Commodity Price Risk We are subject to price risk from fluctuations in market prices of the commodities that we produce. From time to time, we may use commodity price contracts to manage our exposure to fluctuations in commodity prices. At the balance sheet date, we had zinc and lead derivative contracts outstanding as described in (b) below. Our commodity price risk associated with financial instruments primarily relates to changes in fair value caused by final settlement pricing adjustments to receivables and payables, derivative contracts for zinc and lead and embedded derivatives in our TAK road and port contract, in the ongoing payments under our silver stream and gold stream arrangements and in the QB2 variable consideration to IMSA. The following represents the effect on profit (loss) attributable to shareholders from a 10% change in commodity prices, based on outstanding receivables and payables subject to final pricing adjustments at December 31, 2021. There is no effect on other comprehensive income (loss). 29. Financial Instruments and Financial Risk Management (continued) Price on December 31, Change in Profit (CAD$ in millions, except for US$/lb. data) 2021 2020 2021 2020 Copper US$4.42/lb. US$3.52/lb. $ 53 $ 36 Zinc US$1.62/lb. US$1.24/lb. $ 7 $ (2) A 10% change in the price of copper, zinc, lead, silver and gold, respectively, with other variables unchanged, would change our net asset relating to derivatives and embedded derivatives, excluding receivables and payables subject to final pricing adjustments and would change our pre-tax profit (loss) attributable to shareholders by $23 million (2020 – $32 million). There would be no effect on other comprehensive income (loss). Credit Risk Credit risk arises from cash, cash equivalents, derivative contracts, debt securities and trade receivables. While we are exposed to credit losses due to the non-performance of our counterparties, there are no significant concentrations of credit risk and we do not consider this to be a material risk. Our primary counterparties related to our cash, cash equivalents, derivative contracts and debt securities carry investment grade ratings as assessed by external rating agencies, which are monitored on an ongoing basis. All of our commercial customers are assessed for credit quality at least once a year or more frequently if business- or customer-specific conditions change based on an extensive credit rating scorecard developed internally using key credit metrics and measurements that were adapted from S&P’s and Moody’s rating methodologies. Sales to customers that do not meet the credit quality criteria are secured either by a parental guarantee, a letter of credit or prepayment. For our trade receivables, we apply the simplified approach for determining expected credit losses, which requires us to determine the lifetime expected losses for all our trade receivables. The expected lifetime credit loss provision for our trade receivables is based on historical counterparty default rates and adjusted for relevant forward-looking information, as required. Since the majority of our customers are considered to have low default risk and our historical default rate and frequency of losses are low, the lifetime expected credit loss allowance for trade receivables is nominal as at December 31, 2021. Our investments in debt securities carried at fair value through other comprehensive income (loss) are considered to have low credit risk, as our counterparties have investment grade credit ratings. The credit risk of our investments in debt securities has not increased significantly since initial recognition of these investments and accordingly, the loss allowance for investments in debt securities is determined based on the 12-month expected credit losses. The 12-month expected credit loss allowance is based on historical and forward-looking default rates for investment grade entities, which are low and, accordingly, the 12-month expected credit loss allowance for our investments in debt securities is nominal as at December 31, 2021. b) Derivative Financial Instruments and Hedges Sale and Purchase Contracts We record adjustments to our settlement receivables and payables for provisionally priced sales and purchases, respectively, in periods up to the date of final pricing based on movements in quoted market prices or published price assessments for steelmaking coal. These arrangements are based on the market price of the commodity and the value of our settlement receivables and payables will vary, as prices for the underlying commodities vary in the metal markets. These final pricing adjustments result in gains (losses from purchases) in a rising price environment and losses (gains from purchases) in a declining price environment and are recorded in other operating income (expense). The table below outlines our outstanding settlement receivables and payables, which were provisionally valued at December 31, 2021 and December 31, 2020. 29. Financial Instruments and Financial Risk Management (continued) Outstanding at December 31, 2021 Outstanding at December 31, 2020 (Pounds in millions) Pounds US$/lb. Pounds US$/lb. Receivable positions Copper 156 $ 4.42 132 $ 3.52 Zinc 175 $ 1.62 142 $ 1.24 Lead 53 $ 1.06 42 $ 0.90 Payable positions Zinc payable 63 $ 1.62 112 $ 1.24 Lead payable 10 $ 1.06 19 $ 0.90 At December 31, 2021, total outstanding settlement receivables were $1.1 billion (2020 – $949 million) and total outstanding settlement payables were $39 million (2020 – $61 million) (Note 17). These amounts are included in trade and settlement receivables and in trade accounts payable and other liabilities, respectively, on the consolidated balance sheet. Zinc and Lead Swaps Due to ice conditions, the port serving our Red Dog mine is normally only able to ship concentrates from July to October each year. As a result, zinc and lead concentrate sales volumes are generally higher in the third and fourth quarter of each year than in the first and second quarter. During 2021 and 2020, we purchased and sold zinc and lead swaps to match our economic exposure to the average zinc and lead prices over our shipping year, which is from July of one year to June of the following year. We do not apply hedge accounting to the zinc or lead swaps. The fair value of our commodity swaps is calculated using a discounted cash flow method based on forward metal prices. A summary of these derivative contracts and related fair values as at December 31, 2021 is as follows: Derivatives not designated as Quantity Average Price Average Price Fair Value Zinc swaps 140 million lbs. US$1.60/lb. US$1.57/lb. $ 9 Lead swaps 59 million lbs. US$1.04/lb. US$1.05/lb. — $ 9 All free-standing derivative contracts mature in 2022. Free-standing derivatives not designated as hedging instruments are recorded in prepaids and other current assets in the amount of $9 million on the consolidated balance sheet. 29. Financial Instruments and Financial Risk Management (continued) Derivatives Not Designated as Hedging Instruments and Embedded Derivatives (CAD$ in millions) Amount of Gain (Loss) 2021 2020 Zinc derivatives $ 17 $ 12 Lead derivatives 4 (5) Settlement receivables and payables (Note 8) 442 47 Contingent zinc escalation payment embedded derivative (c) (28) (1) Gold stream embedded derivative (c) (8) 28 Silver stream embedded derivative (c) (7) 28 QB2 variable consideration to IMSA (Note 10(a)) (97) — $ 323 $ 109 Accounting Hedges Net investment hedge We manage the foreign currency translation risk of our various investments in U.S. dollar functional currency subsidiaries in part through the designation of our U.S. dollar denominated debt as a hedge against these net investments. We designate the spot element of the U.S. dollar debt as the hedging instrument. As only the spot rate element of the debt is designated in the hedging relationship, no ineffectiveness is expected and no ineffectiveness was recognized in profit (loss) for the years ended December 31, 2021 and 2020. The hedged foreign currency risk component is the change in the carrying amount of the net assets of the U.S. dollar functional currency subsidiaries arising from spot U.S. dollar to Canadian dollar exchange rate movements. At December 31, 2021, US$2.7 billion of our debt (2020 – US$3.6 billion) and U.S. dollar investment in foreign operations were designated in a net investment hedging relationship. During the year ended December 31, 2021, $13 million (2020 – $128 million) of foreign exchange translation on our U.S. dollar investment in foreign operations was hedged by an offsetting amount of foreign exchange translation on our U.S. dollar denominated debt. Refer to Note 24(e) for the effect of our net investment hedges on other comprehensive income (loss). c) Embedded Derivatives The TAK road and port contract contains a contingent zinc escalation payment that is considered to be an embedded derivative. The fair value of this embedded derivative was $60 million at December 31, 2021 (2020 – $32 million), of whi ch $9 million (2020 – $6 million) is included in trade accounts payables and other liabilities and the remaining $51 million (2020 – $26 million) is i ncluded in provisions and other liabilities. The gold stream and silver stream agreements entered into in 2015 each contain an embedded derivative in the ongoing future payments due to us. The gold stream’s 15% ongoing payment contains an embedded derivative relating to the gold price. The fair value of this embedded derivative was $43 million at December 31, 2021 ( 2020 – $51 million), of which $3 million (2020 – $5 million) i s included in prepaids and other current assets and the remainin g $40 million (2020 – $46 million) is included in financial and other assets. The silver stream’s 5% ongoing payment contains an embedded derivative relating to the silver price. The fair value of this embedded derivative was $25 million at December 31, 2021 ( 2020 – $33 million ), of which $2 million (2020 – $2 million) is included in prepaids and other current assets and the remaining $23 million ( 2020 – $31 million ) is included in financial and other assets. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurements | Fair Value Measurements Certain of our financial assets and liabilities are measured at fair value on a recurring basis and classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain non-financial assets and liabilities may also be measured at fair value on a non-recurring basis. There are three levels of the fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority. The levels and the valuation techniques used to value our financial assets and liabilities are described below: Level 1 – Quoted Prices in Active Markets for Identical Assets Level 1 inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Certain cash equivalents, certain marketable equity securities and certain debt securities are valued using quoted market prices in active markets. Accordingly, these items are included in Level 1 of the fair value hierarchy. Level 2 – Significant Observable Inputs Other than Quoted Prices Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Derivative instruments and embedded derivatives are included in Level 2 of the fair value hierarchy, as they are valued using pricing models or discounted cash flow models. These models require a variety of inputs, including, but not limited to, market prices, forward price curves, yield curves and credit spreads. These inputs are obtained from or corroborated with the market. Also included in Level 2 are settlement receivables and settlement payables from provisional pricing on concentrate sales and purchases, certain refined metal sales and steelmaking coal sales because they are valued using quoted market prices derived based on forward curves for the respective commodities and published price assessments for steelmaking coal sales. Level 3 – Significant Unobservable Inputs Level 3 inputs are unobservable (supported by little or no market activity). We include investments in certain debt securities and certain equity securities in non-public companies in Level 3 of the fair value hierarchy because they trade infrequently and have little price transparency. The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020, are summarized in the following table: (CAD$ in millions) 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Cash equivalents $ 790 $ — $ — $ 790 $ 313 $ — $ — $ 313 Marketable equity securities 41 — 47 88 64 — 38 102 Debt securities 104 — 1 105 88 — 2 90 Settlement receivables — 1,126 — 1,126 — 949 — 949 Derivative instruments and embedded derivatives — 78 — 78 — 96 — 96 $ 935 $ 1,204 $ 48 $ 2,187 $ 465 $ 1,045 $ 40 $ 1,550 Financial liabilities Derivative instruments and embedded derivatives $ — $ 158 $ — $ 158 $ — $ 32 $ — $ 32 Settlement payables — 39 — 39 — 61 — 61 $ — $ 197 $ — $ 197 $ — $ 93 $ — $ 93 30. Fair Value Measurements (continued) The discounted cash flow models used to determine the FVLCD of certain non-financial assets, are classified as Level 3 measurements. Refer to Note 7 for information about these fair value measurements. Unless disclosed elsewhere in our financial statements (Note 18 and Note 20), the fair value of the remaining financial assets and financial liabilities approximate their carrying value. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2021 | |
Capital Management [Abstract] | |
Capital Management | Capital Management The capital we manage is the total of equity and debt on our balance sheet. Our capital management objectives are to maintain access to the capital we require to operate and grow our business while minimizing the cost of such capital and providing for returns to our investors. Our financial policies are to maintain, on average over time, a target debt-to-EBITDA ratio of approximately 2.0x, consistent with an Investment Grade credit rating. This ratio is expected to vary from its target level from time to time, reflecting commodity price cycles and corporate activity, including the development of major projects. We may also review and amend such policy targets from time to time. We maintain one committed revolving facility in the amount of US$4.0 billion . As at December 31, 2021 , our US$4.0 billion revolving credit facility was undrawn . This facility was converted into a sustainability-linked facility in October of 2021 and extended to mature in October 2026. It includes a financial covenant that requires us to maintain a net debt-to-capitalization ratio that does not exceed 0.60 to 1.0 (Note 18(d)). As at December 31, 2021, our debt-to-adjusted EBITDA ratio was 1.2 (2020 – 2.7) and our net debt-to-capitalization ratio was 0.22 to 1.0 (2020 – 0.24 to 1.0). We manage the risk of not meeting our financial targets through the issuance and repayment of debt, our distribution policy, the issuance of equity capital and asset sales, as well as through the ongoing management of operations, investments and capital expenditures. |
Key Management Compensation
Key Management Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
Key Management Compensation | Key Management Compensation The compensation for key management recognized in total comprehensive income (loss) in respect of employee services is summarized in the table below. Key management includes our directors, President and Chief Executive Officer, executive vice presidents and senior vice presidents. (CAD$ in millions) 2021 2020 Salaries, bonuses, director fees and other short-term benefits $ 21 $ 19 Post-employment benefits 1 8 Share option compensation expense 12 10 Compensation expense related to Units 48 6 $ 82 $ 43 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
New IFRS Pronouncements | New IFRS Pronouncements Amendments to IAS 16 – Property, Plant and Equipment: Proceeds before Intended Use In May 2020, the IASB issued amendments to IAS 16, Property, Plant and Equipment (IAS 16). The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and related costs in profit (loss). An entity is required to apply these amendments for annual reporting periods beginning on or after January 1, 2022. The amendments are applied retrospectively only to items of property, plant and equipment that are available for use after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments. As at December 31, 2021, we have completed our analysis of these amendments and have determined that there will be no retrospective effect on our 2021 financial results on adoption of the amendments. Since the amendments were effective from January 1, 2022, we expect them to have an effect on the accounting related to the sale of products during the commissioning phase of our Quebrada Blanca Phase 2 project (QB2). Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform – Phase 2 In August 2020, the IASB issued amendments to IFRS 9, Financial Instruments (IFRS 9), IAS 39, Financial Instruments: Recognition and Measurement (IAS 39), IFRS 7, Financial Instruments: Disclosures (IFRS 7), IFRS 4, Insurance Contracts (IFRS 4) and IFRS 16, Leases (IFRS 16) as a result of Phase 2 of the IASB’s Interest Rate Benchmark Reform project. The amendments address issues arising in connection with reform of benchmark interest rates, including the replacement of one benchmark rate with an alternative one. The amendments were effective January 1, 2021. For the year ended December 31, 2021, these amendments did not affect our financial statements, as we have not yet transitioned any agreements that are exposed to USD London Interbank Offered Rate (LIBOR) to an alternative benchmark interest rate. Language was included in our sustainability-linked revolving credit facility when we extended its maturity in 2021, which references the Term Secured Overnight Financing Rate (Term SOFR) as the replacement rate for LIBOR. Term SOFR was formally recommended by the Alternative Reference Rates Committee (a committee convened by the U.S. Federal Reserve Board) as the recommended fallback for LIBOR based loans. Term SOFR is expected to be economically equivalent to LIBOR, allowing for use of the practical expedient under IFRS 9. We continue to work with our lenders on the replacement of the affected rates for our other significant financial instruments, which is not expected to result in a significant change in our interest rate risk management strategy or our interest rate risk. Our sustainability-linked revolving credit facility, QB2 project financing facility, Compañía Minera Antamina S.A. (Antamina) loan agreement and QB2 advances from Sumitomo Metal Mining Co., Ltd. and Sumitomo Corporation (together referred to as SMM/SC) are our most significant financial instruments that are exposed to LIBOR. These financial instruments are based on LIBOR settings that are currently scheduled to cease publication after June 30, 2023. We will continue to monitor developments on alternative benchmark interest rates and we expect to transition to alternative rates as widespread market practice is established. 2. Basis of Preparation and New IFRS Pronouncements (continued) Amendments to IAS 12 – Income Taxes In May 2021, the IASB issued amendments to IAS 12, Income Taxes (IAS 12). The amendments will require companies to recognize deferred tax on particular transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. The proposed amendments will typically apply to transactions such as leases for the lessee and decommissioning and restoration obligations related to assets in operation. An entity is required to apply these amendments for annual reporting periods beginning on or after January 1, 2023. Early application is permitted. The amendments are applied to transactions that occur on or after the beginning of the earliest comparative period presented. |
Basis of Presentation | Basis of Presentation Our consolidated financial statements include the accounts of Teck and all of its subsidiaries. Our significant operating subsidiaries include Teck Metals Ltd. (TML), Teck Alaska Incorporated (TAK), Teck Highland Valley Copper Partnership (Highland Valley Copper), Teck Coal Partnership (Teck Coal), Compañía Minera Teck Quebrada Blanca S.A. (QBSA or Quebrada Blanca) and Compañía Minera Teck Carmen de Andacollo (Carmen de Andacollo). All subsidiaries are entities that we control, either directly or indirectly. Control is defined as the exposure, or rights, to variable returns from involvement with an investee and the ability to affect those returns through power over the investee. Power over an investee exists when our existing rights give us the ability to direct the activities that significantly affect the investee’s returns. This control is generally evidenced through owning more than 50% of the voting rights or currently exercisable potential voting rights of a company’s share capital. All of our intra-group balances and transactions, including unrealized profits and losses arising from intra-group transactions, have been eliminated in full. For subsidiaries that we control but do not own 100% of, the net assets and net profit (loss) attributable to outside shareholders are presented as amounts attributable to non-controlling interests in the consolidated balance sheet and consolidated statements of income (loss) and comprehensive income (loss). Certain of our business activities are conducted through joint arrangements. Our interests in joint operations include Galore Creek Partnership (Galore Creek, 50% share) and Fort Hills Energy L.P. (Fort Hills, 21.3% share), which operate in Canada and Antamina (22.5% share), which operates in Peru. We account for our interests in these joint operations by recording our share of the respective assets, liabilities, revenue, expenses and cash flows. We also have an interest in a joint venture, NuevaUnión SpA (NuevaUnión, 50% share), in Chile that we account for using the equity method (Note 14). All dollar amounts are presented in Canadian dollars unless otherwise specified. |
Interests in Joint Arrangements | Interests in Joint Arrangements A joint arrangement can take the form of a joint venture or joint operation. All joint arrangements involve a contractual arrangement that establishes joint control, which exists only when decisions about the activities that significantly affect the returns of the investee require unanimous consent of the parties sharing control. A joint operation is a joint arrangement in which we have rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement in which we have rights to only the net assets of the arrangement. Joint ventures are accounted for in accordance with the policy “Investments in Associates and Joint Ventures”. Joint operations are accounted for by recognizing our share of the assets, liabilities, revenue, expenses and cash flows of the joint operation in our consolidated financial statements. (CAD$ in millions) NuevaUnión Other Total At January 1, 2020 $ 1,071 $ 8 $ 1,079 Contributions 11 1 12 Changes in foreign exchange rates (22) — (22) Share of income (loss) 1 (2) (1) Other — (1) (1) At December 31, 2020 $ 1,061 $ 6 $ 1,067 Contributions 5 — 5 Changes in foreign exchange rates (4) (1) (5) Share of loss (3) — (3) Other — (4) (4) At December 31, 2021 $ 1,059 $ 1 $ 1,060 |
Investments in Associates and Joint Ventures | Investments in Associates and Joint Ventures Investments over which we exercise significant influence but do not control or jointly control are associates. Investments in associates are accounted for using the equity method, except when classified as held for sale. Investments in joint ventures, as determined in accordance with the policy “Interests in Joint Arrangements”, are also accounted for using the equity method. The equity method involves recording the initial investment at cost and subsequently adjusting the carrying value of the investment for our proportionate share of the profit (loss), other comprehensive income (loss) and any other changes in the associate’s or joint venture’s net assets, such as further investments or dividends. Our proportionate share of the associate’s or joint venture’s profit (loss) and other comprehensive income (loss) is based on its most recent financial statements. Adjustments are made to align any inconsistencies between our accounting policies and our associate’s or joint venture’s policies before applying the equity method. Adjustments are also made to account for depreciable assets based on their fair values at the acquisition date of the investment and for any impairment losses recognized by the associate or joint venture. If our share of the associate’s or joint venture’s losses were equal to or exceeded our investment in the associate or joint venture, recognition of further losses would be discontinued. After our interest is reduced to zero, additional losses would be provided for and a liability recognized only to the extent that we have incurred legal or constructive obligations to provide additional funding or to make payments on behalf of the associate or joint venture. If the associate or joint venture subsequently reports profits, we resume recognizing our share of those profits only when we have a positive interest in the entity. |
Foreign Currency Translation | Foreign Currency Translation The functional currency of each of our subsidiaries and our joint operations, joint ventures and associates is the currency of the primary economic environment in which the entity operates. Transactions in foreign currencies are translated to the functional currency of the entity at the exchange rate in existence at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the period end date exchange rates. The functional currency of Teck, the parent entity, is the Canadian dollar, which is also the presentation currency of our consolidated financial statements. Foreign operations are translated from their functional currencies, generally the U.S. dollar, into Canadian dollars on consolidation. Items in the statements of income (loss) and other comprehensive income (loss) are translated using weighted average exchange rates that reasonably approximate the exchange rate at the transaction date. Items on the balance sheet are translated at the closing spot exchange rate. Exchange differences on the translation of the net assets of entities with functional currencies other than the Canadian dollar, and any offsetting exchange differences on debt used to hedge those assets, are recognized in a separate component of equity through other comprehensive income (loss). Exchange differences that arise relating to long-term intra-group balances that form part of the net investment in a foreign operation are also recognized in this separate component of equity through other comprehensive income (loss). |
Revenue | Revenue Our revenue consists of sales of copper, zinc and lead concentrates, steelmaking coal, refined zinc, lead and silver and blended bitumen. We also sell other by-products, including molybdenum concentrates, various refined specialty metals, chemicals and fertilizers. Our performance obligations relate primarily to the delivery of these products to our customers, with each separate shipment representing a separate performance obligation. Revenue, including revenue from the sale of by-products, is recognized at the point in time when the customer obtains control of the product. Control is achieved when a product is delivered to the customer, we have a present right to payment for the product, significant risks and rewards of ownership have transferred to the customer according to contract terms and there is no unfulfilled obligation that could affect the customer’s acceptance of the product. 3. Summary of Significant Accounting Policies (continued) Base metal concentrates For copper, zinc and lead concentrates, control of the product generally transfers to the customer when an individual shipment parcel is loaded onto a carrier accepted by the customer. We sell a majority of our concentrates on commercial terms where we are responsible for providing freight services after the date at which control of the product passes to the customer. We are the principal to this freight performance obligation. A minority of zinc concentrate sales are made on consignment. For consignment transactions, control of the product transfers to the customer and revenue is recognized at the time the product is consumed in the customer’s process. The majority of our metal concentrates are sold under pricing arrangements where final prices are determined by quoted market prices in a period subsequent to the date of sale. For these sales, revenue is recorded based on the estimated consideration to be received at the date of sale, with reference to relevant commodity market prices. Adjustments are made to settlement receivables in subsequent periods based on movements in quoted commodity prices up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). Metal concentrate sales are billed based on provisional weights and assays upon the passage of control to the customer. The first provisional invoice is billed to the customer at the time of transfer of control. As final prices, weights and assays are received, additional invoices are issued and collected. In general, consideration is promptly collected from customers; however, the payment terms are customer-specific and subject to change based on market conditions and other factors. We generally retain title to these products until we receive the first contracted payment, which is typically received shortly after loading or shortly after arrival at the destination port, solely to manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining control of the product. Steelmaking coal For steelmaking coal, control of the product generally transfers to the customer when an individual shipment parcel is loaded onto a carrier accepted by or directly contracted by the customer. For a majority of steelmaking coal sales, we are not responsible for the provision of shipping or product insurance after the transfer of control. For certain sales, we arrange shipping on behalf of our customers and are the agent to these shipping transactions. Steelmaking coal is sold under spot or average pricing contracts. For spot price contracts, pricing is final when revenue is recognized. For average pricing contracts, the final pricing is determined based on quoted steelmaking coal price assessments over a specific period. Control of the goods may transfer and revenue may be recognized before, during or subsequent to the period in which final average pricing is determined. For all steelmaking coal sales under average pricing contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on estimated consideration to be received at the date of sale with reference to steelmaking coal price assessments. For average pricing contracts, adjustments are made to settlement receivables in subsequent periods based on published price assessments up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). Steelmaking coal sales are billed based on final quality and quantity measures upon the passage of control to the customer. If pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized. The payment terms generally require prompt collection from customers; however, payment terms are customer-specific and subject to change based on market conditions and other factors. We generally retain title to these products until we receive the first contracted payment, which is typically received shortly after loading, solely to manage the credit risk of the amounts due to us. This retention of title does not preclude the customer from obtaining control of the product. Refined metals For sales of refined metals, control of the product transfers to the customer when the product is loaded onto a carrier accepted by the customer. For these products, loading generally coincides with the transfer of title. 3. Summary of Significant Accounting Policies (continued) Our refined metals are sold under spot or average pricing contracts. For spot sales contracts, pricing is final when revenue is recognized. For refined metal sales contracts where pricing is not finalized when revenue is recognized, revenue is recorded based on the estimated consideration to be received at the date of sale with reference to commodity market prices. Adjustments are made to settlement receivables in subsequent periods based on movements in quoted commodity prices up to the date of final pricing. This adjustment mechanism is based on the market price of the commodity and, accordingly, the changes in value of the settlement receivables are not considered to be revenue from contracts with customers. The changes in fair value of settlement receivables are recorded in other operating income (expense). We sell a portion of our refined metals on commercial terms where we are responsible for providing freight services after the date at which control of the product passes to the customer. We are the principal to this freight performance obligation. Refined metal sales are billed based on final specification measures upon the passage of control to the customer. If pricing is not finalized when control of the product is transferred, a subsequent invoice is issued when pricing is finalized. In general, consideration is promptly collected from customers; however, the payment terms are customer-specific and subject to change based on market conditions and other factors. Blended bitumen For blended bitumen, control of the product generally transfers to the customer when the product passes the delivery point as specified in the contract, which normally coincides with title and risk transfer to the customer. The majority of our blended bitumen is sold under pricing arrangements where final prices are determined based on commodity price indices that are finalized at or near the date of sale. Payments for blended bitumen sales are usually due and settled within 30 days. Our revenue for blended bitumen is net of royalty payments to governments. |
Financial Instruments | Financial Instruments We recognize financial assets and liabilities on the balance sheet when we become a party to the contractual provisions of the instrument. Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and money market investments with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Cash is classified as a financial asset that is subsequently measured at amortized cost. Cash equivalents are classified as subsequently measured at amortized cost, except for money market investments, which are classified as subsequently measured at fair value through profit (loss). Trade receivables Trade receivables relate to amounts owing from sales under our spot pricing contracts for steelmaking coal, refined metals, blended bitumen, chemicals and fertilizers. These receivables are non-interest bearing and are recognized at face amount, except when fair value is materially different and are subsequently measured at amortized cost. Trade receivables recorded are net of lifetime expected credit losses. Settlement receivables Settlement receivables arise from base metal concentrate sales contracts and average pricing steelmaking coal contracts, where amounts receivable vary based on underlying commodity prices or steelmaking coal price assessments. Settlement receivables are classified as fair value through profit (loss) and are recorded at fair value at each reporting period based on quoted commodity prices or published price assessments up to the date of final pricing. The changes in fair value are recorded in other operating income (expense). 3. Summary of Significant Accounting Policies (continued) Investments in marketable equity securities Investments in marketable equity securities are classified, at our election, as subsequently measured at fair value through other comprehensive income (loss). For new investments in marketable equity securities, we can elect the same classification as subsequently measured at fair value through other comprehensive income (loss), or we can elect to classify an investment as at fair value through profit (loss). This election can be made on an investment-by-investment basis and is irrevocable. Investment transactions are recognized on the trade date, with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date. When investments in marketable equity securities subsequently measured at fair value through other comprehensive income (loss) are disposed of, the cumulative gains and losses recognized in other comprehensive income (loss) are not recycled to profit (loss) and remain within equity. Dividends are recognized in profit (loss). These investments are not assessed for impairment. Investments in debt securities Investments in debt securities are classified as subsequently measured at fair value through other comprehensive income (loss) and recorded at fair value. Investment transactions are recognized on the trade date, with transaction costs included in the underlying balance. Fair values are determined by reference to quoted market prices at the balance sheet date. Unrealized gains and losses on debt securities are recognized in other comprehensive income (loss) until investments are disposed of and the cumulative gains and losses recognized in other comprehensive income (loss) are reclassified from equity to profit (loss) at that time. Loss allowances and interest income are recognized in profit (loss). Trade payables Trade payables are non-interest bearing if paid when due and are recognized at face amount, except when fair value is materially different. Trade payables are subsequently measured at amortized cost. Debt Debt is initially recorded at fair value, net of transaction costs. Debt is subsequently measured at amortized cost, calculated using the effective interest rate method. Derivative instruments Derivative instruments, including embedded derivatives in executory contracts or financial liability contracts, are classified as at fair value through profit (loss) and, accordingly, are recorded on the balance sheet at fair value. Unrealized gains and losses on derivatives not designated in a hedging relationship are recorded as part of other operating income (expense) or non-operating income (expense) in profit (loss) depending on the nature of the derivative. Fair values for derivative instruments are determined using inputs based on market conditions existing at the balance sheet date or settlement date of the derivative. Derivatives embedded in non-derivative contracts are recognized separately unless they are closely related to the host contract. Expected credit losses For trade receivables, we apply the simplified approach to determining expected credit losses, which requires expected lifetime losses to be recognized upon initial recognition of the receivables. Loss allowances on investments in debt securities are initially assessed based on the expected 12-month credit loss. At each reporting date, we assess whether the credit risk for our debt securities has increased significantly since initial recognition. If the credit risk has increased significantly since initial recognition, the loss allowance is adjusted to be based on the lifetime expected credit losses. Hedging Certain derivative investments may qualify for hedge accounting. At the inception of hedge relationships, we document the economic relationship between hedging instruments and hedged items and our risk management objective and strategy for undertaking the hedge transactions. 3. Summary of Significant Accounting Policies (continued) For fair value hedges, any gains or losses on both the hedged item and the hedging instrument are recognized in the same line item in profit (loss). For cash flow hedges, any unrealized gains or losses on the hedging instrument relating to the effective portion of the hedge are initially recorded in other comprehensive income (loss). Where a cash flow hedge relates to a transaction where a non-financial asset or liability is recognized, accumulated gains or losses are recognized directly in the carrying amount of the non-financial asset or liability. The gains or losses are reclassified to profit (loss) in the same period or periods in which the hedged expected future cash flows affect profit (loss), when the hedged item ceases to exist or when the hedge is determined to be ineffective. For hedges of net investments in foreign operations, any foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are initially recorded in other comprehensive income (loss). Gains and losses are recognized in profit (loss) on the ineffective portion of the hedge, or when there is a disposition or partial disposition of a foreign operation being hedged. |
Inventories | Inventories Finished products, work in process, raw materials and supplies inventories are valued at the lower of weighted average cost and net realizable value. Work in process inventory includes inventory in the milling, smelting or refining process and stockpiled ore at mining operations. Raw materials include concentrates for use at smelting and refining operations. For our oil sands mining and processing operation, raw materials consist of diluent used in blending, work in process inventory consists of raw bitumen and finished products consist of blended bitumen. For work in process and finished product inventories, cost includes all direct costs incurred in production, including direct labour and materials, freight, depreciation and amortization and directly attributable overhead costs. Production stripping costs that are not capitalized are included in the cost of inventories as incurred. Depreciation and amortization of capitalized production stripping costs are included in the cost of inventory. For supplies inventories, cost includes acquisition, freight and other directly attributable costs. When our operations are producing at reduced levels, fixed overhead costs are only allocated to inventory based on normal production levels. When inventories have been written down to net realizable value, we make a new assessment of net realizable value in each subsequent period. If the circumstances that caused the write-down no longer exist, the remaining amount of the write-down on inventory not yet sold is reversed. We use both joint-product and by-product costing for work in process and finished product inventories. Joint-product costing is applied to primary products where the profitability of the operations is dependent upon the production of these products. Joint-product costing allocates total production costs based on the relative values of the products. By-product costing is used for products that are not the primary products produced by the operation. The by-products are allocated only the incremental costs of processes that are specific to the production of that product. |
Property, Plant and Equipment | Property, Plant and Equipment Land, buildings, plant and equipment Land is recorded at cost and buildings, plant and equipment are recorded at cost less accumulated depreciation and impairment losses. Cost includes the purchase price and the directly attributable costs to bring the assets to the location and condition necessary for them to be capable of operating in the manner intended by management. Depreciation of mobile equipment, buildings used for production and plant and processing equipment at our mining operations is calculated on a units-of-production basis. Depreciation of buildings not used for production and of plant and equipment at our smelting operations is calculated on a straight-line basis over the assets’ estimated useful lives. Where components of an asset have different useful lives, depreciation is calculated on each component separately. Depreciation commences when an asset is ready for its intended use. Estimates of remaining useful lives and residual values are reviewed annually. Changes in estimates are accounted for prospectively. 3. Summary of Significant Accounting Policies (continued) The expected useful lives of assets depreciated on a straight-line basis are as follows: • Buildings and equipment (not used for production) 1–43 years • Plant and equipment (smelting operations) 3–30 years Mineral properties and mine development costs The cost of acquiring and developing mineral properties or property rights, including pre-production waste rock stripping costs related to mine development and costs incurred during production to increase future output, are capitalized. Waste rock stripping costs incurred in the production phase of a surface mine are recorded as capitalized production stripping costs within property, plant and equipment when it is probable that the stripping activity will improve access to the orebody, when the component of the orebody or pit to which access has been improved can be identified and when the costs relating to the stripping activity can be measured reliably. When the actual waste-to-ore stripping ratio in a period is greater than the expected life-of-component waste-to-ore stripping ratio for that component, the excess is recorded as capitalized production stripping costs. Once available for use, mineral properties and mine development costs are depreciated on a units-of-production basis over the proven and probable reserves to which they relate. Since the stripping activity within a component of a mine improves access to the reserves of the same component, capitalized production stripping costs incurred during the production phase of a mine are depreciated on a units-of-production basis over the proven and probable reserves expected to be mined from the same component. Exploration and evaluation costs Property acquisition costs are capitalized. Other exploration and evaluation costs are capitalized if they relate to specific properties for which resources, as defined under National Instrument 43-101, Standards of Disclosure for Mineral Projects , exist or are near a specific property with a defined resource and it is expected that the expenditure can be recovered by future exploitation or sale. All other costs are charged to profit (loss) in the year in which they are incurred. Capitalized exploration and evaluation costs are considered to be tangible assets. These assets are not depreciated, as they are not currently available for use. When proven and probable reserves are determined and development is approved, capitalized exploration and evaluation costs are reclassified to mineral properties within property, plant and equipment. Costs of oil sands properties The costs of acquiring, exploring, evaluating and developing oil sands properties are capitalized when it is expected that these costs will be recovered through future exploitation or sale of the property. Capitalized development costs of oil sands properties are tangible assets. Assets that are not yet available for use are not depreciated. When proven and probable reserves are determined and development is approved, capitalized development costs for oil sands properties are reclassified to mineral properties within property, plant and equipment. Construction in progress Assets in the course of construction are capitalized as construction in progress. On completion, the cost of construction is transferred to the appropriate category of property, plant and equipment and depreciation commences when the asset is available for its intended use. Repairs and maintenance Repairs and maintenance costs, including shutdown maintenance costs, are charged to expense as incurred, except when these repairs significantly extend the life of an asset or result in a significant operating improvement. In these instances, the portion of these repairs relating to the betterment is capitalized as part of plant and equipment. 3. Summary of Significant Accounting Policies (continued) Borrowing costs We capitalize borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of time to construct or prepare for its intended use. We begin capitalizing borrowing costs when there are borrowings, expenditures are incurred and activities are undertaken to prepare the asset for its intended use. The amount of borrowing costs capitalized cannot exceed the actual amount of borrowing costs incurred during the period. All other borrowing costs are expensed as incurred. We suspend the capitalization of borrowing costs when we suspend the active development of a qualifying asset for an extended period. Capitalization recommences when active development resumes. We discontinue the capitalization of borrowing costs when substantially all of the activities necessary to prepare the qualifying asset for its intended use or sale are complete. Capitalized borrowing costs are amortized over the useful life of the related asset. Impairment and impairment reversal of non-current assets The carrying amounts of assets included in property, plant and equipment and intangible assets are reviewed for impairment whenever facts and circumstances indicate that the recoverable amounts may be less than the carrying amounts. If there are indicators of impairment, the recoverable amount of the asset is estimated in order to determine the extent of any impairment. Where the asset does not generate cash flows that are independent from other assets, the recoverable amount of the cash-generating unit (CGU) to which the asset belongs is determined. The recoverable amount of an asset or CGU is determined as the higher of its fair value less costs of disposal (FVLCD) and its value in use. An impairment loss exists if the asset’s or CGU’s carrying amount exceeds the estimated recoverable amount and is recorded as an expense immediately. Fair value is the price that would be received from selling an asset in an orderly transaction between market participants at the measurement date. Costs of disposal are incremental costs directly attributable to the disposal of an asset. For mining assets, when a binding sale agreement is not readily available, FVLCD is usually estimated using a discounted cash flow approach, unless comparable market transactions on which to estimate fair value are available. Estimated future cash flows are calculated using estimated future commodity prices, reserves and resources and operating and capital costs. All inputs used are those that an independent market participant would consider appropriate. Value in use is determined as the present value of the future cash flows expected to be derived from continuing use of an asset or CGU in its present form. These estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU for which estimates of future cash flows have not been adjusted. A value in use calculation uses a pre-tax discount rate and a FVLCD calculation uses a post-tax discount rate. Indicators of impairment for exploration and evaluation assets are assessed on a project-by-project basis or as part of the mining operation to which they relate. Tangible or intangible assets that have been impaired in prior periods are tested for possible reversal of impairment whenever events or significant changes in circumstances indicate that the impairment may have reversed. Indicators of a potential reversal of an impairment loss mainly mirror the indicators present when the impairment was originally recorded. If the impairment has reversed, the carrying amount of the asset is increased to its recoverable amount, but not beyond the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior periods. A reversal of an impairment loss is recognized in profit (loss) immediately. |
Intangible Assets | Intangible Assets Intangible assets are mainly internally generated and primarily relate to our innovation and technology initiatives. Development costs for internally generated intangible assets are capitalized when the product or process is clearly defined, the technical feasibility and usefulness of the asset has been established, we are committed and have the resources to complete the project and the costs can be reliably measured. Intangible assets are recorded at cost less accumulated depreciation and impairment losses. Cost includes directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. Costs associated with maintaining our innovation and technology initiatives, once implemented, are recognized as an expense as incurred. Finite life intangible assets are amortized on a straight-line basis over their useful lives. Amortization commences when an asset is ready for its intended use. Estimates of remaining useful lives are reviewed annually. Changes in estimates are accounted for prospectively. The expected useful lives of our finite life intangible assets are between 7 and 40 years. 3. Summary of Significant Accounting Policies (continued) |
Goodwill | GoodwillWe allocate goodwill arising from business combinations to each CGU or group of CGUs that are expected to receive the benefits from the business combination. The carrying amount of the CGU or group of CGUs to which goodwill has been allocated is tested annually for impairment or when there is an indication that the goodwill may be impaired. Any impairment is recognized as an expense immediately. Should there be a recovery in the value of a CGU or group of CGUs, any impairment of goodwill previously recorded is not subsequently reversed. |
Leases | Leases At the inception of a contract, we assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. We assess whether the contract involves the use of an identified asset, whether we have the right to obtain substantially all of the economic benefits from use of the asset during the term of the arrangement and whether we have the right to direct the use of the asset. At inception or on reassessment of a contract that contains a lease component, we allocate the consideration in the contract to each lease component on the basis of their relative stand-alone prices. As a lessee, we recognize a right-of-use asset, which is included in property, plant and equipment, and a lease liability at the commencement date of a lease. The right-of-use asset is initially measured at cost, which is comprised of the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any decommissioning and restoration costs, less any lease incentives received. The right-of-use asset is subsequently depreciated from the commencement date to the earlier of the end of the lease term, or the end of the useful life of the asset. In addition, the right-of-use asset may be reduced due to impairment losses, if any, and adjusted for certain remeasurements of the lease liability. A lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by the interest rate implicit in the lease or, if that rate cannot be readily determined, our incremental borrowing rate. Lease liabilities include the net present value of lease payments, which are comprised of: • Fixed payments, including in-substance fixed payments, less any lease incentives receivable • Variable lease payments that depend on an index or a rate, initially measured using the index or a rate as at the commencement date • Amounts expected to be payable under a residual value guarantee • Exercise prices of purchase options if we are reasonably certain to exercise that option • Payments of penalties for terminating the lease, if the lease term reflects us exercising an option to terminate the lease The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if there is a change in our estimate or assessment of the expected amount payable under a residual value guarantee, purchase, extension or termination option. Variable lease payments not included in the initial measurement of the lease liability are charged directly to profit (loss). We have elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are charged directly to profit (loss) on a straight-line basis over the lease term. |
Income Taxes | Income Taxes Taxes, comprising both income taxes and resource taxes, are accounted for as income taxes under IAS 12, Income Taxes and are recognized in the statement of income (loss), except where they relate to items recognized in other comprehensive income (loss) or directly in equity, in which case the related taxes are recognized in other comprehensive income (loss) or equity. Current taxes receivable or payable are based on estimated taxable income for the current year at the statutory tax rates enacted, or substantively enacted, less amounts paid or received on account. 3. Summary of Significant Accounting Policies (continued) Deferred tax assets and liabilities are recognized based on temporary differences (the difference between the tax and accounting values of assets and liabilities) and are calculated using enacted or substantively enacted tax rates for the periods in which the differences are expected to reverse. The effect of changes in tax legislation, including changes in tax rates, is recognized in the period of substantive enactment. Deferred tax assets are recognized only to the extent where it is probable that the future taxable profits or capital gains of the relevant entity or group of entities in a particular jurisdiction will be available, against which the assets can be utilized. Deferred tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries, joint ventures and associates. However, we do not recognize such deferred tax liabilities where the timing of the reversal of the temporary differences can be controlled without affecting our operations or business and where it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets and liabilities are not recognized if the temporary differences arise from the initial recognition of goodwill or an asset or liability in a transaction, other than in a business combination, which will affect neither accounting profit nor taxable profit. However, we recognize deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. We are subject to assessments by various taxation authorities, who may interpret tax legislation differently than we do. The final amount of taxes to be paid depends on a number of factors, including the outcomes of audits, appeals or negotiated settlements. We account for such differences based on our best estimate of the probable outcome of these matters. |
Employee Benefits | Employee Benefits Defined benefit pension plans Defined benefit pension plan obligations are based on actuarial determinations. The projected unit credit method, which sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation, is used to determine the defined benefit obligations, the related current service costs and, where applicable, the past service costs. Actuarial assumptions used in the determination of defined benefit pension plan assets and liabilities are based upon our best estimates, including discount rates, salary escalation, expected healthcare costs and retirement dates of employees. Vested and unvested costs arising from past service following the introduction of changes to a defined benefit plan are recognized immediately as an expense when the changes are made. Actuarial gains and losses can arise from differences between expected and actual outcomes or changes in actuarial assumptions. Actuarial gains and losses, changes in the effect of the asset ceiling and return on plan assets are collectively referred to as remeasurements of retirement benefit plans and are recognized immediately through other comprehensive income (loss) and directly into retained earnings. Measurement of our net defined benefit asset is limited to the lower of the surplus of assets less liabilities in the defined benefit plan and the asset ceiling less liabilities in the defined benefit plan. The asset ceiling is the present value of the expected economic benefit available to us in the form of refunds from the plan or reductions in future contributions to the plan. We apply one discount rate to the net defined benefit asset or liability for the purposes of determining the interest component of the defined benefit cost. This interest component is recorded as part of finance expense. Depending on the classification of the salary of plan members, current service costs and past service costs are included in cost of sales, general and administration expenses, exploration expenses or research and innovation expenses. Defined contribution pension plans The cost of providing benefits through defined contribution plans is charged to profit (loss) as the obligation to contribute is incurred. Non-pension post-retirement plans We provide healthcare benefits for certain employees when they retire. Non-pension post-retirement plan obligations are based on actuarial determinations. The cost of these benefits is expensed over the period in which the employees render services. We fund these non-pension post-retirement benefits as they become due. 3. Summary of Significant Accounting Policies (continued) Termination benefits We recognize a liability and an expense for termination benefits when we have demonstrably committed to terminate employees. We are demonstrably committed to a termination when, and only when, there is a formal plan for the termination with no realistic possibility of withdrawal. The plan should include, at a minimum, the location, function and approximate number of employees whose services are to be terminated, the termination benefits for each job classification or function and the time at which the plan will be implemented without significant changes. |
Share-Based Payments | Share-Based Payments The fair value method of accounting is used for share-based payment transactions. Under this method, the cost of share options and other equity-settled share-based payment arrangements is recorded based on the estimated fair value at the grant date, including an estimate of the forfeiture rate, and charged to other operating income (expense) over the vesting period. For employees eligible for normal retirement prior to vesting, the expense is charged to other operating income (expense) over the period from the grant date to the date they are eligible for retirement. |
Share Repurchases | Share Repurchases Where we repurchase any of our equity share capital, the excess of the consideration paid over book value is deducted from retained earnings. |
Provisions | Provisions Decommissioning and restoration provisions Future obligations to retire an asset and to restore a site, including dismantling, remediation and ongoing treatment and monitoring of the site related to normal operations, are initially recognized and recorded as a provision based on estimated future cash flows discounted at a credit-adjusted risk-free rate. These decommissioning and restoration provisions are adjusted at each reporting period for changes to factors including the expected amount of cash flows required to discharge the liability, the timing of such cash flows and the discount rate. The provisions are also accreted to full value over time through periodic charges to profit (loss). This unwinding of the discount is charged to finance expense in the statement of income (loss). The amount of the decommissioning and restoration provisions initially recognized is capitalized as part of the related asset’s carrying value. The method of depreciation follows that of the underlying asset. For a closed site or where the asset that generated a decommissioning and restoration provision no longer exists, there is no longer any future benefit related to the costs, and as such, the amounts are expensed through other operating income (expense). For operating sites, a revision in estimates or a new disturbance will result in an adjustment to the provision with an offsetting adjustment to the capitalized asset retirement cost. During the operating life of an asset, events such as infractions of environmental laws or regulations may occur. These events are not related to the normal operation of the asset. The costs associated with these provisions are accrued and charged to other operating income (expense) in the period in which the event giving rise to the liability occurs. Changes in the estimated liability resulting in an adjustment to these provisions are also charged to other operating income (expense) in the period in which the estimate changes. 3. Summary of Significant Accounting Policies (continued) Other provisions |
Research and Innovation | Research and Innovation Costs incurred during the research phase are expensed as part of research and innovation. Costs associated with the development of our innovation-driven transformation program, where the process is not clearly defined and technical feasibility is not established, are also expensed as incurred. |
Earnings (Loss) per Share | Earnings (Loss) per Share Earnings (loss) per share is calculated based on the weighted average number of shares outstanding during the year. For diluted earnings per share, dilution is calculated based upon the net number of common shares issued, should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price in the year. In periods of loss, the loss per share and diluted loss per share are the same since the effect of the issuance of additional common shares would be anti-dilutive. |
Fair Value Measurements | Certain of our financial assets and liabilities are measured at fair value on a recurring basis and classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain non-financial assets and liabilities may also be measured at fair value on a non-recurring basis. There are three levels of the fair value hierarchy that prioritize the inputs to valuation techniques used to measure fair value, with Level 1 inputs having the highest priority. The levels and the valuation techniques used to value our financial assets and liabilities are described below: Level 1 – Quoted Prices in Active Markets for Identical Assets Level 1 inputs are unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Certain cash equivalents, certain marketable equity securities and certain debt securities are valued using quoted market prices in active markets. Accordingly, these items are included in Level 1 of the fair value hierarchy. Level 2 – Significant Observable Inputs Other than Quoted Prices Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Derivative instruments and embedded derivatives are included in Level 2 of the fair value hierarchy, as they are valued using pricing models or discounted cash flow models. These models require a variety of inputs, including, but not limited to, market prices, forward price curves, yield curves and credit spreads. These inputs are obtained from or corroborated with the market. Also included in Level 2 are settlement receivables and settlement payables from provisional pricing on concentrate sales and purchases, certain refined metal sales and steelmaking coal sales because they are valued using quoted market prices derived based on forward curves for the respective commodities and published price assessments for steelmaking coal sales. Level 3 – Significant Unobservable Inputs Level 3 inputs are unobservable (supported by little or no market activity). |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [abstract] | |
Summary of Revenue Disaggregated by Geographical Region | (CAD$ in millions) 2021 Copper Zinc Steelmaking Coal Energy Total Copper $ 3,066 $ — $ — $ — $ 3,066 Zinc 286 2,336 — — 2,622 Steelmaking coal — — 6,251 — 6,251 Blended bitumen — — — 715 715 Silver 41 454 — — 495 Lead 6 439 — — 445 Other 53 345 — — 398 Intra-segment — (511) — — (511) $ 3,452 $ 3,063 $ 6,251 $ 715 $ 13,481 (CAD$ in millions) 2020 Copper Zinc Steelmaking Coal Energy Total Copper $ 2,119 $ — $ — $ — $ 2,119 Zinc 189 2,062 — — 2,251 Steelmaking coal — — 3,375 — 3,375 Blended bitumen — — — 454 454 Silver 35 432 — — 467 Lead 5 356 — — 361 Other 71 314 — — 385 Intra-segment — (464) — — (464) $ 2,419 $ 2,700 $ 3,375 $ 454 $ 8,948 5. Revenue (continued) b) Total Revenue by Region The following table shows our revenues disaggregated by geographical region. Revenues are attributed to regions based on the destination port or delivery location as designated by the customer. (CAD$ in millions) 2021 2020 Asia China $ 4,643 $ 1,861 Japan 1,437 1,211 South Korea 1,354 982 India 556 588 Other 894 757 Americas United States 1,679 1,189 Canada 1,279 1,027 Latin America 116 166 Europe Germany 731 610 Finland 182 124 Belgium 136 106 Spain 123 163 Other 351 164 $ 13,481 $ 8,948 |
Expenses by Nature (Tables)
Expenses by Nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Expenses by Nature | (CAD$ in millions) 2021 2020 Employment-related costs: Wages and salaries $ 1,040 $ 971 Employee benefits and other wage-related costs 272 272 Bonus payments 266 128 Post-employment benefits and pension costs 154 124 1,732 1,495 Transportation 1,519 1,378 Depreciation and amortization 1,583 1,510 Raw material purchases 1,077 715 Fuel and energy 842 697 Operating supplies consumed 658 620 Maintenance and repair supplies 735 648 Contractors and consultants 811 648 Overhead costs 414 268 Royalties 373 266 Other operating costs 4 62 9,748 8,307 Adjusted for: Capitalized production stripping costs (667) (499) Change in inventory (313) 81 Total cost of sales, general and administration, exploration and research and innovation expenses $ 8,768 $ 7,889 |
Asset and Goodwill Impairment_2
Asset and Goodwill Impairment Testing (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Impairment of Assets [Abstract] | |
Summary of Pre-tax Impairment Reversal and (Asset Impairments) Recorded in Statement of Income | The following pre-tax impairment reversal and (asset impairment) were recorded in profit (loss): Impairment Reversal and (Asset Impairment) (CAD$ in millions) 2021 2020 Carmen de Andacollo CGU $ 215 $ — Fort Hills CGU — (1,244) Total $ 215 $ (1,244) |
Summary of Key Assumptions Used in Our Asset Impairment Reversal and Goodwill Impairment Analyses | The following are the key assumptions used in our impairment testing calculations for the years ended December 31, 2021 and 2020: 2021 2020 WCS heavy oil prices per barrel Long-term real price in 2026 of US$48 Long-term real price in 2025 of US$46 Steelmaking coal prices per tonne Long-term real price in 2026 of US$150 Long-term real price in 2025 of US$150 Copper prices per pound Long-term real price in 2026 of US$3.30 Long-term real price in 2025 of US$3.00 Post-tax real discount rates 6.0%—8.0% 6.0%—8.0% Long-term foreign exchange rates 1 U.S. to 1.28 Canadian dollars 1 U.S. to 1.30 Canadian dollars |
Other Operating Income (Expen_2
Other Operating Income (Expense) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Other Operating Income (Expense) | (CAD$ in millions) 2021 2020 Settlement pricing adjustments (Note 29(b)) $ 442 $ 47 Share-based compensation (125) (47) Environmental costs and remeasurement of decommissioning and restoration (108) (270) Care and maintenance costs (65) (52) Social responsibility and donations (27) (23) Gain (loss) on sale of assets (14) 34 Commodity derivatives (22) 62 Take or pay contract costs (97) (104) COVID-19 costs (Note 4(c)) — (282) Other (62) (90) $ (78) $ (725) |
Finance Income and Finance Ex_2
Finance Income and Finance Expense (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Finance Income and Finance Expense | (CAD$ in millions) 2021 2020 Finance income Investment income $ 5 $ 10 Total finance income $ 5 $ 10 Finance expense Debt interest $ 298 $ 275 Interest on advances from SMM/SC 37 42 Interest on lease liabilities (Note 19(c)) 35 37 Letters of credit and standby fees 44 48 Net interest expense on retirement benefit plans 5 5 Accretion on decommissioning and restoration provisions (Note 23(a)) 151 114 Other 15 8 585 529 Less capitalized borrowing costs (Note 15) (370) (251) Total finance expense $ 215 $ 278 |
Non-Operating Income (Expense)
Non-Operating Income (Expense) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Analysis of income and expense [abstract] | |
Schedule of Non-Operating Income (Expense) | (CAD$ in millions) 2021 2020 QB2 variable consideration to IMSA and ENAMI (a) $ (141) $ 56 Foreign exchange gains (losses) 39 (2) Loss on debt redemption or purchase (Note 18(b)) — (11) Other (3) — $ (105) $ 43 a) QB2 variable consideration to IMSA and ENAMI |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Cash Flow Statement [Abstract] | |
Summary of Cash Flow Information | (CAD$ in millions) December 31, December 31, Cash and cash equivalents Cash $ 637 $ 137 Investments with maturities from the date of acquisition of three months or less 790 313 $ 1,427 $ 450 |
Summary of Non-Cash Working Capital Items | (CAD$ in millions) 2021 2020 Net change in non-cash working capital items Trade and settlement receivables $ (670) $ (294) Inventories (412) 100 Prepaids and other current assets (105) (102) Trade accounts payable and other liabilities 313 55 $ (874) $ (241) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories [Abstract] | |
Summary of Inventories | (CAD$ in millions) December 31, December 31, Supplies $ 797 $ 757 Raw materials 250 197 Work in process 741 592 Finished products 728 410 2,516 1,956 Less long-term portion (Note 13) (126) (84) $ 2,390 $ 1,872 |
Financial and Other Assets (Tab
Financial and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Schedule of Financial and Other Assets | (CAD$ in millions) December 31, December 31, Long-term receivables and deposits $ 322 $ 289 Marketable equity and debt securities carried at fair value 178 178 Pension plans in a net asset position (Note 22(a)) 449 301 Derivative assets 63 77 Long-term portion of inventories (Note 12) 126 84 Finite life intangibles 395 309 Other 38 31 $ 1,571 $ 1,269 |
Investments in Associates and_2
Investments in Associates and Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Schedule of Disclosure of Information on Associates and Joint Ventures | Interests in Joint Arrangements A joint arrangement can take the form of a joint venture or joint operation. All joint arrangements involve a contractual arrangement that establishes joint control, which exists only when decisions about the activities that significantly affect the returns of the investee require unanimous consent of the parties sharing control. A joint operation is a joint arrangement in which we have rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement in which we have rights to only the net assets of the arrangement. Joint ventures are accounted for in accordance with the policy “Investments in Associates and Joint Ventures”. Joint operations are accounted for by recognizing our share of the assets, liabilities, revenue, expenses and cash flows of the joint operation in our consolidated financial statements. (CAD$ in millions) NuevaUnión Other Total At January 1, 2020 $ 1,071 $ 8 $ 1,079 Contributions 11 1 12 Changes in foreign exchange rates (22) — (22) Share of income (loss) 1 (2) (1) Other — (1) (1) At December 31, 2020 $ 1,061 $ 6 $ 1,067 Contributions 5 — 5 Changes in foreign exchange rates (4) (1) (5) Share of loss (3) — (3) Other — (4) (4) At December 31, 2021 $ 1,059 $ 1 $ 1,060 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment [abstract] | |
Property, Plant and Equipment | (CAD$ in millions) Exploration Mineral Land, Capitalized Construction Total At December 31, 2019 Cost $ 885 $ 20,155 $ 16,951 $ 6,073 $ 5,292 $ 49,356 Accumulated depreciation — (5,973) (8,599) (3,429) — (18,001) Net book value $ 885 $ 14,182 $ 8,352 $ 2,644 $ 5,292 $ 31,355 Year ended December 31, 2020 Opening net book value $ 885 $ 14,182 $ 8,352 $ 2,644 $ 5,292 $ 31,355 Additions 22 — 368 563 3,353 4,306 Disposals (1) — (54) (5) (7) (67) Asset impairment — (261) (983) — — (1,244) Depreciation and amortization — (288) (774) (546) — (1,608) Transfers between classifications — 65 652 — (717) — Decommissioning and restoration — 814 56 — — 870 Capitalized borrowing costs — 84 — — 167 251 Changes in foreign exchange (3) (61) (40) (12) (169) (285) Closing net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 At December 31, 2020 Cost $ 903 $ 20,758 $ 16,722 $ 6,598 $ 7,919 $ 52,900 Accumulated depreciation — (6,223) (9,145) (3,954) — (19,322) Net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 Year ended December 31, 2021 Opening net book value $ 903 $ 14,535 $ 7,577 $ 2,644 $ 7,919 $ 33,578 Additions 45 — 181 740 3,877 4,843 Disposals — — (6) — (18) (24) Impairment reversal — 215 — — — 215 Depreciation and amortization — (373) (802) (694) — (1,869) Transfers between classifications — (50) 2,162 — (2,112) — Decommissioning and restoration — 250 39 — — 289 Capitalized borrowing costs — 115 — — 255 370 Changes in foreign exchange (4) (11) (13) (2) 10 (20) Closing net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382 At December 31, 2021 Cost $ 944 $ 21,362 $ 18,716 $ 7,334 $ 9,931 $ 58,287 Accumulated depreciation — (6,681) (9,578) (4,646) — (20,905) Net book value $ 944 $ 14,681 $ 9,138 $ 2,688 $ 9,931 $ 37,382 15. Property, Plant and Equipment (continued) a) Exploration and Evaluation Significant exploration and evaluation projects in property, plant and equipment include the Galore Creek, San Nicolás and Zafranal projects. b) Borrowing Costs Borrowing costs are capitalized at a rate based on our weighted average cost of borrowing or at the rate on the project-specific debt, as applicable. Capitalized borrowing costs are classified with the asset they relate to within mineral properties, land, buildings, plant and equipment, or construction in progress. Our weighted average borrowing rate used for capitalization of borrowing costs in 2021 was 5.4% (2020 – 5.4%). |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets [Abstract] | |
Schedule of Goodwill | (CAD$ in millions) Steelmaking Quebrada Total January 1, 2020 $ 702 $ 399 $ 1,101 Changes in foreign exchange rates — (8) (8) December 31, 2020 $ 702 $ 391 $ 1,093 Changes in foreign exchange rates — (2) (2) December 31, 2021 $ 702 $ 389 $ 1,091 |
Trade Accounts Payable and Ot_2
Trade Accounts Payable and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Trade Accounts Payable and Other Liabilities | (CAD$ in millions) December 31, December 31, Trade accounts payable and accruals $ 1,653 $ 1,428 Capital project accruals 546 599 Payroll-related liabilities 293 266 Accrued interest 100 104 Commercial and government royalties 325 229 Current portion of provisions (Note 23(a)) 210 173 Settlement payables (Note 29(b)) 39 61 Contract liabilities - consignment sales 30 15 Other 59 34 $ 3,255 $ 2,909 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Scheduled Principal Payments | ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying 4.75% notes due January 2022 (b) $ 150 $ 190 $ 190 $ 150 $ 195 $ 190 3.75% notes due February 2023 (b) 108 140 137 108 144 139 3.9% notes due July 2030 (a) 550 751 688 550 781 690 6.125% notes due October 2035 609 1,005 761 609 1,005 764 6.0% notes due August 2040 490 795 620 490 782 622 6.25% notes due July 2041 795 1,349 997 795 1,309 1,001 5.2% notes due March 2042 399 602 500 399 596 502 5.4% notes due February 2043 377 586 473 377 571 475 3,478 5,418 4,366 3,478 5,383 4,383 QB2 project financing facility (c) 2,252 2,929 2,785 1,147 1,459 1,423 Revolving credit facilities (d) — — — 262 334 334 Antamina loan agreements (e) 176 223 223 90 115 115 $ 5,906 $ 8,570 $ 7,374 $ 4,977 $ 7,291 $ 6,255 Less current portion of debt (168) (213) (213) (90) (115) (115) $ 5,738 $ 8,357 $ 7,161 $ 4,887 $ 7,176 $ 6,140 ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying QB2 Advances from SMM/SC $ 1,003 $ 1,288 $ 1,263 $ 739 $ 941 $ 934 |
Schedule of Maturity Analysis for Non-Derivative Financial Liabilities | At December 31, 2021, scheduled principal payments during the next five years and thereafter are as follows: ($ in millions) US$ CAD$ 2022 $ 168 $ 213 2023 373 472 2024 265 336 2025 265 336 2026 422 536 Thereafter 4,413 5,594 $ 5,906 $ 7,487 Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2021 are as follows: (CAD$ in millions) Less Than 2–3 4–5 More Than Total Trade accounts payable and other liabilities $ 3,045 $ — $ — $ — $ 3,045 Debt (Note 18(f)) 213 808 872 5,594 7,487 Lease liabilities 154 191 172 611 1,128 Obligation to Neptune Bulk Terminals — 26 144 — 170 ENAMI preferential dividend liability — 43 16 46 105 QB2 advances from SMM/SC — — — 1,271 1,271 QB2 variable consideration to IMSA — 63 63 — 126 Other liabilities — 139 56 37 232 Estimated interest payments on debt 277 623 601 2,907 4,408 Estimated interest payments on QB2 advances — — — 1,753 1,753 Estimated interest payments on lease and other 16 24 12 30 82 |
Summary of Debt Continuity | Debt Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 4,913 $ 3,204 $ 6,255 $ 4,162 Cash flows Proceeds from debt 1,305 1,802 1,639 2,426 Redemption, purchase or repayment of debt (124) (338) (155) (457) Revolving credit facilities (262) 262 (335) 363 Non-cash changes Loss on debt redemption or purchase — 8 — 11 Changes in foreign exchange rates — — (10) (216) Finance fees and discount amortization (29) (29) (36) (39) Other 13 4 16 5 As at December 31 $ 5,816 $ 4,913 $ 7,374 $ 6,255 ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 734 $ 702 $ 934 $ 912 Cash flows Advances 262 31 326 41 Non-cash changes Finance fee amortization 1 1 1 1 Changes in foreign exchange rates — — 2 (20) As at December 31 $ 997 $ 734 $ 1,263 $ 934 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Adoption of New IFRS Pronouncements | As at December 31, 2021, $704 million (2020 – $730 million) of right-of-use assets are recorded as part of land, buildings, plant and equipment within property, plant and equipment. (CAD$ in millions) 2021 2020 Opening net book value $ 730 $ 762 Additions 141 312 Depreciation (163) (166) Changes in foreign exchange rates and other (4) (178) Closing net book value $ 704 $ 730 |
Disclosure of Lease Liability Continuity | Lease Liability Continuity (CAD$ in millions) 2021 2020 As at January 1 $ 692 $ 672 Cash flows Principal payments (139) (163) Interest payments (35) (37) Non-cash changes Additions 151 319 Interest expense (Note 9) 35 37 Changes in foreign exchange and other (10) (136) As at December 31 $ 694 $ 692 Less current portion (127) (119) Long-term lease liabilities $ 567 $ 573 |
QB2 Advances from SMM_SC (Table
QB2 Advances from SMM/SC (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments [Abstract] | |
Scheduled Principal Payments | ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying 4.75% notes due January 2022 (b) $ 150 $ 190 $ 190 $ 150 $ 195 $ 190 3.75% notes due February 2023 (b) 108 140 137 108 144 139 3.9% notes due July 2030 (a) 550 751 688 550 781 690 6.125% notes due October 2035 609 1,005 761 609 1,005 764 6.0% notes due August 2040 490 795 620 490 782 622 6.25% notes due July 2041 795 1,349 997 795 1,309 1,001 5.2% notes due March 2042 399 602 500 399 596 502 5.4% notes due February 2043 377 586 473 377 571 475 3,478 5,418 4,366 3,478 5,383 4,383 QB2 project financing facility (c) 2,252 2,929 2,785 1,147 1,459 1,423 Revolving credit facilities (d) — — — 262 334 334 Antamina loan agreements (e) 176 223 223 90 115 115 $ 5,906 $ 8,570 $ 7,374 $ 4,977 $ 7,291 $ 6,255 Less current portion of debt (168) (213) (213) (90) (115) (115) $ 5,738 $ 8,357 $ 7,161 $ 4,887 $ 7,176 $ 6,140 ($ in millions) December 31, 2021 December 31, 2020 Face Fair Carrying Face Fair Carrying QB2 Advances from SMM/SC $ 1,003 $ 1,288 $ 1,263 $ 739 $ 941 $ 934 |
Summary of Debt Continuity | Debt Continuity ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 4,913 $ 3,204 $ 6,255 $ 4,162 Cash flows Proceeds from debt 1,305 1,802 1,639 2,426 Redemption, purchase or repayment of debt (124) (338) (155) (457) Revolving credit facilities (262) 262 (335) 363 Non-cash changes Loss on debt redemption or purchase — 8 — 11 Changes in foreign exchange rates — — (10) (216) Finance fees and discount amortization (29) (29) (36) (39) Other 13 4 16 5 As at December 31 $ 5,816 $ 4,913 $ 7,374 $ 6,255 ($ in millions) US$ CAD$ Equivalent 2021 2020 2021 2020 As at January 1 $ 734 $ 702 $ 934 $ 912 Cash flows Advances 262 31 326 41 Non-cash changes Finance fee amortization 1 1 1 1 Changes in foreign exchange rates — — 2 (20) As at December 31 $ 997 $ 734 $ 1,263 $ 934 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Summary of Reconciliation of Income Taxes | Tax rate reconciliation to the Canadian statutory income tax rate (CAD$ in millions) 2021 2020 Tax expense (recovery) at the Canadian statutory income tax rate of 26.54% (2020 – 26.58%) $ 1,203 $ (302) Tax effect of: Resource taxes 426 106 Resource and depletion allowances (61) (68) Non-deductible expenses (non-taxable income) 69 28 Tax pools not recognized (recognition of previously unrecognized tax pools) (56) 5 Withholding taxes on foreign earnings 60 40 Difference in tax rates in foreign jurisdictions 15 1 Revisions to prior year estimates (14) (4) Non-controlling interests (15) (2) Other (10) 4 Total income taxes $ 1,617 $ (192) Represented by: Current income taxes $ 978 $ 374 Deferred income taxes 639 (566) Total income taxes $ 1,617 $ (192) b) Continuity of deferred tax assets and liabilities (CAD$ in millions) January 1, 2021 Through Profit (Loss) Through OCI December 31, 2021 Net operating loss and capital loss carryforwards $ 247 $ (106) $ — $ 141 Property, plant and equipment (168) (12) — (180) Decommissioning and restoration provisions 158 32 — 190 Other temporary differences 34 (19) (5) 10 Deferred income tax assets $ 271 $ (105) $ (5) $ 161 Net operating loss and capital loss carryforwards $ (1,038) $ 503 $ 3 $ (532) Property, plant and equipment 7,369 176 1 7,546 Decommissioning and restoration provisions (962) (86) (2) (1,050) Unrealized foreign exchange (88) 1 2 (85) Withholding taxes 95 6 (1) 100 Inventories 110 47 (1) 156 Other temporary differences (103) (113) 54 (162) Deferred income tax liabilities $ 5,383 $ 534 $ 56 $ 5,973 21. Income Taxes (continued) (CAD$ in millions) January 1, 2020 Through Profit (Loss) Through OCI December 31, 2020 Net operating loss and capital loss carryforwards $ 190 $ 57 $ — $ 247 Property, plant and equipment (144) (22) (2) (168) Decommissioning and restoration provisions 123 35 — 158 Other temporary differences 42 (13) 5 34 Deferred income tax assets $ 211 $ 57 $ 3 $ 271 Net operating loss and capital loss carryforwards $ (642) $ (408) $ 12 $ (1,038) Property, plant and equipment 7,101 294 (26) 7,369 Decommissioning and restoration provisions (637) (327) 2 (962) Unrealized foreign exchange (116) 11 17 (88) Withholding taxes 91 6 (2) 95 Inventories 91 19 — 110 Other temporary differences 14 (104) (13) (103) Deferred income tax liabilities $ 5,902 $ (509) $ (10) $ 5,383 |
Summary of Deferred Tax Expense Charged (Credited) to Income Statement | Continuity of deferred tax assets and liabilities (CAD$ in millions) January 1, 2021 Through Profit (Loss) Through OCI December 31, 2021 Net operating loss and capital loss carryforwards $ 247 $ (106) $ — $ 141 Property, plant and equipment (168) (12) — (180) Decommissioning and restoration provisions 158 32 — 190 Other temporary differences 34 (19) (5) 10 Deferred income tax assets $ 271 $ (105) $ (5) $ 161 Net operating loss and capital loss carryforwards $ (1,038) $ 503 $ 3 $ (532) Property, plant and equipment 7,369 176 1 7,546 Decommissioning and restoration provisions (962) (86) (2) (1,050) Unrealized foreign exchange (88) 1 2 (85) Withholding taxes 95 6 (1) 100 Inventories 110 47 (1) 156 Other temporary differences (103) (113) 54 (162) Deferred income tax liabilities $ 5,383 $ 534 $ 56 $ 5,973 21. Income Taxes (continued) (CAD$ in millions) January 1, 2020 Through Profit (Loss) Through OCI December 31, 2020 Net operating loss and capital loss carryforwards $ 190 $ 57 $ — $ 247 Property, plant and equipment (144) (22) (2) (168) Decommissioning and restoration provisions 123 35 — 158 Other temporary differences 42 (13) 5 34 Deferred income tax assets $ 211 $ 57 $ 3 $ 271 Net operating loss and capital loss carryforwards $ (642) $ (408) $ 12 $ (1,038) Property, plant and equipment 7,101 294 (26) 7,369 Decommissioning and restoration provisions (637) (327) 2 (962) Unrealized foreign exchange (116) 11 17 (88) Withholding taxes 91 6 (2) 95 Inventories 91 19 — 110 Other temporary differences 14 (104) (13) (103) Deferred income tax liabilities $ 5,902 $ (509) $ (10) $ 5,383 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefits [Abstract] | |
Summary of Actuarial Valuation of Plans | Actuarial Valuation of Plans (CAD$ in millions) 2021 2020 Defined Non-Pension Defined Non-Pension Defined benefit obligation Balance at beginning of year $ 2,558 $ 445 $ 2,337 $ 404 Current service cost 72 14 55 19 Past service costs arising from plan improvements 13 3 — — Benefits paid (144) (14) (146) (17) Interest expense 59 11 69 13 Obligation experience adjustments 4 (13) 27 (3) Effect from change in financial assumptions (159) (24) 221 33 Effect from change in demographic assumptions 4 3 1 (3) Changes in foreign exchange rates — (5) (6) (1) Balance at end of year 2,407 420 2,558 445 Fair value of plan assets Fair value at beginning of year 2,812 — 2,659 — Interest income 66 — 79 — Return on plan assets, excluding amounts included 102 — 204 — Benefits paid (144) (14) (146) (17) Contributions by the employer 22 14 21 17 Changes in foreign exchange rates — — (5) — Fair value at end of year 2,858 — 2,812 — Funding surplus (deficit) 451 (420) 254 (445) Less effect of the asset ceiling Balance at beginning of year 72 — 63 — Interest on asset ceiling 2 — 2 — Change in asset ceiling 25 — 7 — Balance at end of year 99 — 72 — Net accrued retirement benefit asset (liability) $ 352 $ (420) $ 182 $ (445) Represented by: Pension assets (Note 13) $ 449 $ — $ 301 $ — Accrued retirement benefit liability (97) (420) (119) (445) Net accrued retirement benefit asset (liability) $ 352 $ (420) $ 182 $ (445) |
Summary of Defined Benefit Plans | 2021 2020 Defined Non-Pension Defined Non-Pension Discount rate 2.88 % 2.96 % 2.39 % 2.50 % Rate of increase in future compensation 3.25 % 3.25 % 3.25 % 3.25 % Medical trend rate — 5.00 % — 5.00 % |
Summary of Sensitivity of Defined Benefit Obligation to Changes in Weighted Average Assumptions | 2021 Effect on Defined Benefit Obligation Change in Increase in Decrease in Discount rate 1.0 % Decrease by 13% Increase by 15% Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1% Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1% 2020 Effect on Defined Benefit Obligation Change in Increase in Decrease in Discount rate 1.0 % Decrease by 12% Increase by 14% Rate of increase in future compensation 1.0 % Increase by 1% Decrease by 1% Medical cost claim trend rate 1.0 % Increase by 1% Decrease by 1% 2021 2020 Male Female Male Female Retiring at the end of the reporting period 85.3 years 87.7 years 85.3 years 87.7 years Retiring 20 years after the end of the reporting period 86.4 years 88.7 years 86.4 years 88.7 years |
Summary of Defined Benefit Pension Plan Assets | The defined benefit pension plan assets at December 31, 2021 and 2020 are as follows: (CAD$ in millions) 2021 2020 Quoted Unquoted Total % Quoted Unquoted Total % Equity securities $ 1,069 $ — 37 % $ 1,058 $ — 38 % Debt securities $ 1,389 $ — 49 % $ 1,385 $ — 49 % Real estate and other $ 71 $ 329 14 % $ 62 $ 307 13 % |
Provisions and Other Liabilit_2
Provisions and Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Summary of Provisions and Other Liabilities | (CAD$ in millions) December 31, December 31, Decommissioning and restoration provisions and other provisions (a) $ 3,813 $ 3,484 Obligation to Neptune Bulk Terminals (b) 170 111 Derivative liabilities (net of current portion of $9 (2020 – $6)) 51 26 ENAMI preferential dividend liability (Note 10(a)) 78 30 QB2 variable consideration to IMSA (Note 10(a)) 98 — Other IMSA payable 61 60 Other liabilities 83 20 $ 4,354 $ 3,731 a) Decommissioning and Restoration Provisions and Other Provisions |
Summary of Movements in Provisions | The following table summarizes the movements in provisions for the year ended December 31, 2021: (CAD$ in millions) Decommissioning and Other Provisions Total As at January 1, 2021 $ 3,342 $ 315 $ 3,657 Settled during the year (90) (38) (128) Change in discount rate 322 — 322 Change in amount and timing of cash flows 2 75 77 Accretion (Note 9) 151 4 155 Other (4) (56) (60) Changes in foreign exchange rates 2 (2) — As at December 31, 2021 3,725 298 4,023 Less current portion of provisions (Note 17) (144) (66) (210) Long-term provisions $ 3,581 $ 232 $ 3,813 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [abstract] | |
Summary of Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding | Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding Shares (in 000’s) Class A Class B Subordinate Voting As at January 1, 2020 7,765 539,528 Shares issued on options exercised (c) — 145 Acquired and cancelled pursuant to normal course issuer bid (h) — (16,292) As at December 31, 2020 7,765 523,381 Shares issued on options exercised (c) — 3,067 As at December 31, 2021 7,765 526,448 |
Summary of Weighted Average Assumptions | The weighted average fair value of share options granted in the year was estimated at $10.83 per option (2020 – $4.76) at the grant date based on the Black-Scholes option-pricing model using the following assumptions: 2021 2020 Weighted average exercise price $ 29.04 $ 14.42 Dividend yield 0.69 % 2.13 % Risk-free interest rate 0.75 % 1.19 % Expected option life 6.3 years 6.1 years Expected volatility 40 % 41 % Forfeiture rate 0.78 % 1.16 % |
Summary of Outstanding Share Options | Outstanding share options are as follows: 2021 2020 Share Weighted Share Weighted Outstanding at beginning of year 25,250 $ 20.61 20,152 $ 23.02 Granted 2,519 29.04 6,314 14.42 Exercised (3,189) 16.03 (156) 8.33 Forfeited (186) 25.43 (293) 20.97 Expired (714) 52.86 (767) 35.14 Outstanding at end of year 23,680 $ 21.12 25,250 $ 20.61 Vested and exercisable at end of year 16,543 $ 21.29 17,368 $ 21.76 |
Summary of Information Relating to Share Options Outstanding | Information relating to share options outstanding at December 31, 2021, is as follows: Outstanding Share Options (in 000’s) Exercise Weighted Average Remaining Life 4,096 $5.34 — $13.57 49 4,876 $13.58 — $14.71 98 5,406 $14.72 — $26.53 43 5,700 $26.54 — $29.43 88 3,602 $29.44 — $39.90 36 23,680 $5.34 — $39.90 65 |
Summary of Exercise Price Range for Share Options | Information relating to share options outstanding at December 31, 2021, is as follows: Outstanding Share Options (in 000’s) Exercise Weighted Average Remaining Life 4,096 $5.34 — $13.57 49 4,876 $13.58 — $14.71 98 5,406 $14.72 — $26.53 43 5,700 $26.54 — $29.43 88 3,602 $29.44 — $39.90 36 23,680 $5.34 — $39.90 65 |
Summary of Outstanding Units | The outstanding Units are summarized in the following table: (in 000’s) 2021 2020 Outstanding Vested Outstanding Vested DSUs 2,526 2,526 2,555 2,555 RSUs 2,707 — 1,408 — PSUs 1,622 — 1,449 — PDSUs 185 67 213 70 7,040 2,593 5,625 2,625 |
Summary of Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (CAD$ in millions) 2021 2020 Accumulated other comprehensive income – beginning of year $ 247 $ 309 Currency translation differences: Unrealized losses on translation of foreign subsidiaries (50) (197) Foreign exchange differences on debt designated as a hedge of our investment in foreign subsidiaries (net of taxes of $(2) and $(17)) (Note 29(b)) 11 111 (39) (86) Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(3)) (6) 24 Remeasurements of retirement benefit plans (net of taxes of $(91) and $29) 171 (50) Total other comprehensive income (loss) 126 (112) Less remeasurements of retirement benefit plans recorded in retained earnings (171) 50 Accumulated other comprehensive income – end of year $ 202 $ 247 |
Summary of Basic and Diluted Earnings Per Share | The following table reconciles our basic and diluted earnings (loss) per share: (CAD$ in millions, except per share data) 2021 2020 Net basic and diluted profit (loss) attributable to shareholders of the company $ 2,868 $ (864) Weighted average shares outstanding (000’s) 532,340 534,378 Dilutive effect of share options 7,931 — Weighted average diluted shares outstanding (000’s) 540,271 534,378 Basic earnings (loss) per share $ 5.39 $ (1.62) Diluted earnings (loss) per share $ 5.31 $ (1.62) |
Non-Controlling Interests (Tabl
Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | |
Summary of Information About Subsidiaries with Non-controlling Interests and Non-controlling Interest Balances | (CAD$ in millions) Principal Place of Percentage of Ownership December 31, December 31, Carmen de Andacollo Region IV, Chile 10 % $ 24 $ 26 Quebrada Blanca (a) Region I, Chile 40 % 612 526 Elkview Mine Limited Partnership British Columbia, 5 % 86 74 Compañía Minera Arequipa Region, 20 % 46 43 $ 768 $ 669 25. Non-Controlling Interests (continued) a) Quebrada Blanca The non-controlling interest in QBSA, the entity that owns QB2, consists of SMM/SC, who subscribed for a 30% indirect interest in QBSA in 2019, and ENAMI, a Chilean state-owned agency that holds a 10% preference share interest. ENAMI’s interest in QBSA does not require ENAMI to make contributions toward QBSA’s capital spending. The following is the summarized financial information for Quebrada Blanca before intra-group eliminations. Quebrada Blanca has non-controlling interests that are considered material to our consolidated financial statements. (CAD$ in millions) December 31, 2021 December 31, 2020 Summarized balance sheet Current assets $ 166 $ 221 Current liabilities 731 698 Current net assets (565) (477) Non-current assets 11,699 8,575 Non-current liabilities 7,328 4,841 Non-current net assets 4,371 3,734 Net assets $ 3,806 $ 3,257 Accumulated non-controlling interests $ 612 $ 526 Summarized statement of comprehensive income (loss) Revenue $ 136 $ 116 Loss for the period (182) (291) Other comprehensive income (loss) (10) (47) Total comprehensive income (loss) $ (192) $ (338) Loss allocated to non-controlling interests $ (20) $ (95) Summarized cash flows Cash flows from operating activities $ (516) $ (442) Cash flows from investing activities (2,597) (1,657) Cash flows from financing activities 3,117 1,668 Effect of exchange rates on cash and cash equivalents 2 8 Net increase (decrease) in cash and cash equivalents $ 6 $ (423) |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Operating Segments [Abstract] | |
Schedule of Operating Segments | (CAD$ in millions) December 31, 2021 Copper Zinc Steelmaking Coal Energy Corporate Total Segment revenue $ 3,452 $ 3,574 $ 6,251 $ 715 $ — $ 13,992 Less intra-segment revenue — (511) — — — (511) Revenue (Note 5(a)) 3,452 3,063 6,251 715 — 13,481 Cost of sales (1,711) (2,375) (3,466) (848) — (8,400) Gross profit (loss) 1,741 688 2,785 (133) — 5,081 Impairment reversal (Note 7(a)) 215 — — — — 215 Other operating income (expense) (14) (41) 153 (21) (523) (446) Profit (loss) from operations 1,942 647 2,938 (154) (523) 4,850 Net finance income (expense) (116) (47) (91) (26) 70 (210) Non-operating income (expense) (137) 4 — — 28 (105) Share of loss of associates and joint ventures (3) — — — — (3) Profit (loss) before taxes 1,686 604 2,847 (180) (425) 4,532 Capital expenditures 3,074 259 1,284 83 13 4,713 Goodwill (Note 16) 389 — 702 — — 1,091 Total assets $ 18,077 $ 4,401 $ 18,390 $ 2,704 $ 3,796 $ 47,368 (CAD$ in millions) December 31, 2020 Copper Zinc Steelmaking Coal Energy Corporate Total Segment revenue $ 2,419 $ 3,164 $ 3,375 $ 454 $ — $ 9,412 Less intra-segment revenue — (464) — — — (464) Revenue (Note 5(a)) 2,419 2,700 3,375 454 — 8,948 Cost of sales (1,560) (2,177) (3,098) (780) — (7,615) Gross profit (loss) 859 523 277 (326) — 1,333 Asset impairment (Note 7(a)) — — — (1,244) — (1,244) Other operating expenses (323) (98) (193) (28) (357) (999) Profit (loss) from operations 536 425 84 (1,598) (357) (910) Net finance income (expense) (151) (44) (56) (26) 9 (268) Non-operating income (expense) 38 (4) 13 — (4) 43 Share of gain (loss) of associates and joint ventures 1 — — — (2) (1) Profit (loss) before taxes 424 377 41 (1,624) (354) (1,136) Capital expenditures 1,990 247 1,284 91 16 3,628 Goodwill (Note 16) 391 — 702 — — 1,093 Total assets $ 14,546 $ 4,006 $ 17,266 $ 2,658 $ 2,802 $ 41,278 |
Schedule of Geographical Areas | The geographical distribution of our non-current assets, other than financial instruments, deferred tax assets and post-employment benefit assets, is as follows: (CAD$ in millions) December 31, December 31, Canada $ 22,949 $ 22,410 Chile 13,771 10,555 United States 1,788 1,710 Peru 1,597 1,483 Other 162 157 $ 40,267 $ 36,315 |
Financial Instruments and Fin_2
Financial Instruments and Financial Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure of risk management strategy related to hedge accounting [abstract] | |
Schedules of Risks Arising from Financial Instruments | U.S. dollar financial instruments subject to foreign exchange risk consist of U.S. dollar denominated items held in Canada and are summarized below. (US$ in millions) December 31, December 31, Cash and cash equivalents $ 664 $ 23 Trade and settlement receivables 1,042 616 Trade accounts payable and other liabilities (703) (608) Debt (3,479) (3,741) Reduced by: Debt designated as a hedging instrument in our net investment hedge 2,697 3,575 Net U.S. dollar exposure $ 221 $ (135) 29. Financial Instruments and Financial Risk Management (continued) Outstanding at December 31, 2021 Outstanding at December 31, 2020 (Pounds in millions) Pounds US$/lb. Pounds US$/lb. Receivable positions Copper 156 $ 4.42 132 $ 3.52 Zinc 175 $ 1.62 142 $ 1.24 Lead 53 $ 1.06 42 $ 0.90 Payable positions Zinc payable 63 $ 1.62 112 $ 1.24 Lead payable 10 $ 1.06 19 $ 0.90 |
Schedule of Maturity Analysis for Non-Derivative Financial Liabilities | At December 31, 2021, scheduled principal payments during the next five years and thereafter are as follows: ($ in millions) US$ CAD$ 2022 $ 168 $ 213 2023 373 472 2024 265 336 2025 265 336 2026 422 536 Thereafter 4,413 5,594 $ 5,906 $ 7,487 Contractual undiscounted cash flow requirements for financial liabilities as at December 31, 2021 are as follows: (CAD$ in millions) Less Than 2–3 4–5 More Than Total Trade accounts payable and other liabilities $ 3,045 $ — $ — $ — $ 3,045 Debt (Note 18(f)) 213 808 872 5,594 7,487 Lease liabilities 154 191 172 611 1,128 Obligation to Neptune Bulk Terminals — 26 144 — 170 ENAMI preferential dividend liability — 43 16 46 105 QB2 advances from SMM/SC — — — 1,271 1,271 QB2 variable consideration to IMSA — 63 63 — 126 Other liabilities — 139 56 37 232 Estimated interest payments on debt 277 623 601 2,907 4,408 Estimated interest payments on QB2 advances — — — 1,753 1,753 Estimated interest payments on lease and other 16 24 12 30 82 |
Schedule of Sensitivity Analysis for Types of Market Risk | The following represents the effect on profit (loss) attributable to shareholders from a 10% change in commodity prices, based on outstanding receivables and payables subject to final pricing adjustments at December 31, 2021. There is no effect on other comprehensive income (loss). 29. Financial Instruments and Financial Risk Management (continued) Price on December 31, Change in Profit (CAD$ in millions, except for US$/lb. data) 2021 2020 2021 2020 Copper US$4.42/lb. US$3.52/lb. $ 53 $ 36 Zinc US$1.62/lb. US$1.24/lb. $ 7 $ (2) 29. Financial Instruments and Financial Risk Management (continued) Outstanding at December 31, 2021 Outstanding at December 31, 2020 (Pounds in millions) Pounds US$/lb. Pounds US$/lb. Receivable positions Copper 156 $ 4.42 132 $ 3.52 Zinc 175 $ 1.62 142 $ 1.24 Lead 53 $ 1.06 42 $ 0.90 Payable positions Zinc payable 63 $ 1.62 112 $ 1.24 Lead payable 10 $ 1.06 19 $ 0.90 |
Schedules of Risks Arising from Financial Instruments | The fair value of our commodity swaps is calculated using a discounted cash flow method based on forward metal prices. A summary of these derivative contracts and related fair values as at December 31, 2021 is as follows: Derivatives not designated as Quantity Average Price Average Price Fair Value Zinc swaps 140 million lbs. US$1.60/lb. US$1.57/lb. $ 9 Lead swaps 59 million lbs. US$1.04/lb. US$1.05/lb. — $ 9 Derivatives Not Designated as Hedging Instruments and Embedded Derivatives (CAD$ in millions) Amount of Gain (Loss) 2021 2020 Zinc derivatives $ 17 $ 12 Lead derivatives 4 (5) Settlement receivables and payables (Note 8) 442 47 Contingent zinc escalation payment embedded derivative (c) (28) (1) Gold stream embedded derivative (c) (8) 28 Silver stream embedded derivative (c) (7) 28 QB2 variable consideration to IMSA (Note 10(a)) (97) — $ 323 $ 109 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | |
Summary of Fair Values of Financial Assets Measured at Fair Value on Recurring Basis | The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020, are summarized in the following table: (CAD$ in millions) 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Cash equivalents $ 790 $ — $ — $ 790 $ 313 $ — $ — $ 313 Marketable equity securities 41 — 47 88 64 — 38 102 Debt securities 104 — 1 105 88 — 2 90 Settlement receivables — 1,126 — 1,126 — 949 — 949 Derivative instruments and embedded derivatives — 78 — 78 — 96 — 96 $ 935 $ 1,204 $ 48 $ 2,187 $ 465 $ 1,045 $ 40 $ 1,550 Financial liabilities Derivative instruments and embedded derivatives $ — $ 158 $ — $ 158 $ — $ 32 $ — $ 32 Settlement payables — 39 — 39 — 61 — 61 $ — $ 197 $ — $ 197 $ — $ 93 $ — $ 93 |
Summary of Fair Values of Financial Liabilities Measured at Fair Value on Recurring Basis | The fair values of our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2021 and 2020, are summarized in the following table: (CAD$ in millions) 2021 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets Cash equivalents $ 790 $ — $ — $ 790 $ 313 $ — $ — $ 313 Marketable equity securities 41 — 47 88 64 — 38 102 Debt securities 104 — 1 105 88 — 2 90 Settlement receivables — 1,126 — 1,126 — 949 — 949 Derivative instruments and embedded derivatives — 78 — 78 — 96 — 96 $ 935 $ 1,204 $ 48 $ 2,187 $ 465 $ 1,045 $ 40 $ 1,550 Financial liabilities Derivative instruments and embedded derivatives $ — $ 158 $ — $ 158 $ — $ 32 $ — $ 32 Settlement payables — 39 — 39 — 61 — 61 $ — $ 197 $ — $ 197 $ — $ 93 $ — $ 93 |
Key Management Compensation (Ta
Key Management Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party [Abstract] | |
Schedule of Key Management our Directors and Senior Vice Presidents | (CAD$ in millions) 2021 2020 Salaries, bonuses, director fees and other short-term benefits $ 21 $ 19 Post-employment benefits 1 8 Share option compensation expense 12 10 Compensation expense related to Units 48 6 $ 82 $ 43 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
NuevaUnión | |
Disclosure of joint ventures [line items] | |
Ownership interest in joint venture | 50.00% |
Galore Creek Partnership | |
Disclosure of joint ventures [line items] | |
Ownership interest in joint operation | 50.00% |
Fort Hills Energy Limited Partnership | |
Disclosure of joint ventures [line items] | |
Ownership interest in joint operation | 21.30% |
Antamina | |
Disclosure of joint ventures [line items] | |
Ownership interest in joint operation | 22.50% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Expected Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 7 years |
Bottom of range | Buildings and equipment (not used in production) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 1 year |
Bottom of range | Plant and equipment (smelting operations) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 3 years |
Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 40 years |
Top of range | Buildings and equipment (not used in production) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 43 years |
Top of range | Plant and equipment (smelting operations) | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful life measured as period of time, intangible assets other than goodwill | 30 years |
Areas of Judgment and Estimat_2
Areas of Judgment and Estimation Uncertainty - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of initial application of standards or interpretations [line items] | ||
Costs of suspending operations and remobilization of project | $ 434 | |
Suspended capitalized costs | 103 | |
Remaining portion | 49 | |
COVID-19 costs (Note 4(c)) | $ 0 | 282 |
Other income (expense) | ||
Disclosure of initial application of standards or interpretations [line items] | ||
COVID-19 costs (Note 4(c)) | 282 | |
Cost of sales | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Costs of suspending operations and remobilization of project | 41 | |
Social responsibility and donations | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Costs of suspending operations and remobilization of project | $ 8 |
Revenue - Summary of Revenue Di
Revenue - Summary of Revenue Disaggregated by Major Product Type and by Business Unit (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 13,481 | $ 8,948 |
Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 13,992 | 9,412 |
Intra-segment | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | (511) | (464) |
Copper | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,452 | 2,419 |
Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,452 | 2,419 |
Copper | Intra-segment | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Zinc | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,063 | 2,700 |
Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,574 | 3,164 |
Zinc | Intra-segment | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | (511) | (464) |
Steelmaking Coal | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 6,251 | 3,375 |
Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 6,251 | 3,375 |
Steelmaking Coal | Intra-segment | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Energy | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 715 | 454 |
Energy | Intra-segment | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,066 | 2,119 |
Copper | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 3,066 | 2,119 |
Copper | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Copper | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Copper | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 2,622 | 2,251 |
Zinc | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 286 | 189 |
Zinc | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 2,336 | 2,062 |
Zinc | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Zinc | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Steelmaking coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 6,251 | 3,375 |
Steelmaking coal | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Steelmaking coal | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Steelmaking coal | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 6,251 | 3,375 |
Steelmaking coal | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Blended bitumen | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 715 | 454 |
Blended bitumen | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Blended bitumen | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Blended bitumen | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Blended bitumen | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 715 | 454 |
Silver | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 495 | 467 |
Silver | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 41 | 35 |
Silver | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 454 | 432 |
Silver | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Silver | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Lead | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 445 | 361 |
Lead | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 6 | 5 |
Lead | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 439 | 356 |
Lead | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Lead | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Other | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 398 | 385 |
Other | Copper | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 53 | 71 |
Other | Zinc | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 345 | 314 |
Other | Steelmaking Coal | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 0 | 0 |
Other | Energy | Segment revenue | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 0 | $ 0 |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue Disaggregated by Geographical Region (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 13,481 | $ 8,948 |
China | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 4,643 | 1,861 |
Japan | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,437 | 1,211 |
South Korea | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,354 | 982 |
India | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 556 | 588 |
Other | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 894 | 757 |
United States | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,679 | 1,189 |
Canada | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 1,279 | 1,027 |
Latin America | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 116 | 166 |
Germany | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 731 | 610 |
Finland | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 182 | 124 |
Belgium | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 123 | 163 |
Spain | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | 136 | 106 |
Other | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue | $ 351 | $ 164 |
Expenses by Nature - Schedule o
Expenses by Nature - Schedule of Expenses by Nature (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employment-related costs: | ||
Wages and salaries | $ 1,040 | $ 971 |
Employee benefits and other wage-related costs | 272 | 272 |
Bonus payments | 266 | 128 |
Post-employment benefits and pension costs | 154 | 124 |
Employee benefits expense | 1,732 | 1,495 |
Transportation | 1,519 | 1,378 |
Depreciation and amortization | 1,583 | 1,510 |
Raw material purchases | 1,077 | 715 |
Fuel and energy | 842 | 697 |
Operating supplies consumed | 658 | 620 |
Maintenance and repair supplies | 735 | 648 |
Contractors and consultants | 811 | 648 |
Overhead costs | 414 | 268 |
Royalties | 373 | 266 |
Other operating costs | 4 | 62 |
Expense by nature | 9,748 | 8,307 |
Adjusted for: | ||
Capitalized production stripping costs | (667) | (499) |
Change in inventory | (313) | 81 |
Total cost of sales, general and administration, exploration and research and innovation expenses | $ 8,768 | $ 7,889 |
Asset and Goodwill Impairment_3
Asset and Goodwill Impairment Testing - Summary of Pre-tax Impairment Reversal and (Asset Impairments) Recorded in Statement of Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Asset impairments | $ 215 | $ (1,244) |
Carmen de Andacollo CGU | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Asset impairments | 215 | 0 |
Fort Hills CGU | ||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||
Asset impairments | $ 0 | $ (1,244) |
Asset and Goodwill Impairment_4
Asset and Goodwill Impairment Testing - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Mar. 31, 2020CAD ($) | Dec. 31, 2021CAD ($)$ / bbl | Dec. 31, 2020CAD ($)$ / bbl | Dec. 31, 2021USD ($) | |
Discount rate | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Change in Assumption | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |
Canada, Dollars | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Long-term foreign exchange rates | 1.28 | 1.30 | ||||
Carmen de Andacollo CGU | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Reversal of impairment loss | $ 215 | |||||
Reversal of impairment loss, net | $ 150 | |||||
Fort Hills CGU | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Post-tax real discount rates | 8.00% | 8.00% | 8.00% | |||
Recoverable amount net of tax | $ 2,100 | $ 2,100 | $ 2,100 | $ 2,100 | ||
Impairment loss recognised in profit or loss | 597 | $ 647 | $ 1,200 | |||
Impairment loss recognised in profit or loss, after tax | $ 438 | $ 474 | ||||
Fort Hills CGU | Discount rate | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Reasonably possible increase in recoverable amount based on changes in the actuarial assumption | $ 50 | $ 50 | ||||
Change in Assumption | 0.25% | 0.25% | 0.25% | |||
Fort Hills CGU | Canada, Dollars | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Long-term foreign exchange rates | 1.28 | |||||
Fort Hills CGU | Canada, Dollars | Actuarial assumption of expected rates changes of foreign exchange rates | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Reasonably possible increase in recoverable amount based on changes in the actuarial assumption | $ 30 | $ 30 | ||||
Reasonably possible increase in actuarial assumption of exchange rates | $ 0.01 | |||||
Bottom of range | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Post-tax real discount rates | 600.00% | 600.00% | 600.00% | 600.00% | 600.00% | |
Bottom of range | Steelmaking Coal Cash Generating Unit | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Useful life | 14 years | |||||
Top of range | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Post-tax real discount rates | 800.00% | 800.00% | 800.00% | 800.00% | 800.00% | |
Top of range | Steelmaking Coal Cash Generating Unit | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Useful life | 50 years | |||||
Quebrada Blanca | QB2 | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Useful life | 28 years | |||||
Quebrada Blanca | Projected expansion | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Useful life | 42 years | |||||
Mine Plans | Fort Hills CGU | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Useful life | 37 years | 45 years | ||||
WCS Heavy Oil | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Future commodity price used in cash flow projections | $ / bbl | 48 | 46 | ||||
WCS Heavy Oil | Fort Hills CGU | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Future commodity price used in cash flow projections | $ / bbl | 48 | |||||
WCS Heavy Oil | Fort Hills CGU | Actuarial assumptions of recovery rates based on the change in heavy oil prices | ||||||
Disclosure of impairment loss and reversal of impairment loss [line items] | ||||||
Reasonably possible increase in actuarial assumption of heavy oil price | $ 1 | |||||
Reasonably possible increase in recoverable amount based on changes in the actuarial assumption | $ 100 | $ 100 |
Asset and Goodwill Impairment_5
Asset and Goodwill Impairment Testing - Summary of Key Assumptions Used in Our Asset Impairment Reversal and Goodwill Impairment Analyses (Detail) | 12 Months Ended | |
Dec. 31, 2021USD_per_LB$ / bbl | Dec. 31, 2020$ / bblUSD_per_LB | |
Canada, Dollars | ||
Disclosure of information for cash-generating units [line items] | ||
Long-term foreign exchange rates | 1.28 | 1.30 |
WCS Heavy Oil | ||
Disclosure of information for cash-generating units [line items] | ||
Future commodity price used in cash flow projections | $ / bbl | 48 | 46 |
Steelmaking coal | ||
Disclosure of information for cash-generating units [line items] | ||
Future commodity price used in cash flow projections | 150 | 150 |
Copper | ||
Disclosure of information for cash-generating units [line items] | ||
Future commodity price used in cash flow projections | 3.30 | 3 |
Bottom of range | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax real discount rates | 600.00% | 600.00% |
Top of range | ||
Disclosure of information for cash-generating units [line items] | ||
Post-tax real discount rates | 800.00% | 800.00% |
Other Operating Income (Expen_3
Other Operating Income (Expense) - Schedule of Other Operating Income (Expense) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments (Note 29(b)) | $ 323 | $ 109 |
Share-based compensation | (125) | (47) |
Environmental costs and remeasurement of decommissioning and restoration provisions for closed operations | (108) | (270) |
Care and maintenance costs | (65) | (52) |
Social responsibility and donations | (27) | (23) |
Gain (loss) on sale of assets | (14) | 34 |
Take or pay contract costs | (97) | (104) |
COVID-19 costs (Note 4(c)) | 0 | (282) |
Other | (62) | (90) |
Other operating income (expense) | (78) | (725) |
Sale and Purchase Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments (Note 29(b)) | 442 | 47 |
Commodity Derivatives Excluding Sales and Purchase Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments (Note 29(b)) | $ (22) | $ 62 |
Finance Income and Finance Ex_3
Finance Income and Finance Expense - Schedule of Finance Income and Finance Expense (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finance income | ||
Investment income | $ 5 | $ 10 |
Total finance income | 5 | 10 |
Finance expense | ||
Debt interest | 298 | 275 |
Interest on advances from SMM/SC | 37 | 42 |
Interest on lease liabilities (Note 19(c)) | 35 | 37 |
Letters of credit and standby fees | 44 | 48 |
Net interest expense on retirement benefit plans | 5 | 5 |
Accretion on decommissioning and restoration provisions (Note 23(a)) | 151 | 114 |
Other | 15 | 8 |
Finance expense gross | 585 | 529 |
Less capitalized borrowing costs (Note 15) | (370) | (251) |
Total finance expense | $ 215 | $ 278 |
Non-Operating Income (Expense_2
Non-Operating Income (Expense) - Schedule of Non-Operating Income (Expense) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Analysis of income and expense [abstract] | ||
Gain (loss) on variable consideration | $ (141) | $ 56 |
Foreign exchange gains (losses) | 39 | (2) |
Loss on debt redemption or purchase (Note 18(b)) | 0 | (11) |
Other | (3) | 0 |
Total non operating income (expense) | $ (105) | $ 43 |
Non-Operating Income (Expense_3
Non-Operating Income (Expense) - Additional Information (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021CAD ($)USD_per_LB | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($)USD_per_LB | Dec. 31, 2018 | |
ENAMI | ||||
Disclosure of subsidiaries [line items] | ||||
Gains (losses) on change in fair value of derivatives | $ (44) | $ 56 | ||
Financial liabilities at amortised cost | 78 | 30 | ||
Inversiones Mineras S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Gains (losses) on change in fair value of derivatives | $ 97 | 0 | ||
Proportion of additional interests acquired (as a percent) | 13.50% | |||
Derivative liability, contractual amount (in usd per lb) | USD_per_LB | 3.15 | 3.15 | ||
Derivative contractual period | 3 years | |||
Maximum exposure to credit risk of financial assets designated as measured at fair value through profit or loss | $ 100 | |||
Amount by which credit derivatives or similar instruments related to financial assets designated as measured at fair value through profit or loss mitigate maximum exposure to credit risk | $ 98 | $ 0 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary of Cash Flow Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash and cash equivalents | |||
Cash | $ 637 | $ 137 | |
Investments with maturities from the date of acquisition of three months or less | 790 | 313 | |
Cash and cash equivalents | 1,427 | 450 | $ 1,026 |
Net change in non-cash working capital items | |||
Trade and settlement receivables | (670) | (294) | |
Inventories | (412) | 100 | |
Prepaids and other current assets | (105) | (102) | |
Trade accounts payable and other liabilities | 313 | 55 | |
Net change in non-cash working capital items | (874) | (241) | |
Antamina | |||
Cash and cash equivalents | |||
Cash and cash equivalents | 38 | 26 | |
Quebrada Blanca | |||
Cash and cash equivalents | |||
Cash and cash equivalents | $ 88 | $ 82 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories [Abstract] | ||
Supplies | $ 797 | $ 757 |
Raw materials | 250 | 197 |
Work in process | 741 | 592 |
Finished products | 728 | 410 |
Inventories | 2,516 | 1,956 |
Less long-term portion (Note 13) | (126) | (84) |
Current inventories | $ 2,390 | $ 1,872 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories [Abstract] | ||
Cost of sales | $ 8,400 | $ 7,615 |
Inventories recognized as expense | 7,600 | 7,000 |
Net realizable value of inventories | 45 | 75 |
Inventory write downs | $ 12 | $ 151 |
Financial and Other Assets - Sc
Financial and Other Assets - Schedule of Financial and Other Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments [Abstract] | ||
Long-term receivables and deposits | $ 322 | $ 289 |
Marketable equity and debt securities carried at fair value | 178 | 178 |
Pension plans in a net asset position (Note 22(a)) | 449 | 301 |
Derivative assets | 63 | 77 |
Long-term portion of inventories (Note 12) | 126 | 84 |
Finite life intangibles | 395 | 309 |
Other | 38 | 31 |
Financial and other assets | $ 1,571 | $ 1,269 |
Investments in Associates and_3
Investments in Associates and Joint Ventures - Summary of Investments in Associates and Joint Ventures (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Beginning balance | $ 1,067 | $ 1,079 |
Contributions | 5 | 12 |
Changes in foreign exchange rates | (5) | (22) |
Share of income (loss) | (3) | (1) |
Other | (4) | (1) |
Ending balance | 1,060 | 1,067 |
NuevaUnión | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Beginning balance | 1,061 | 1,071 |
Contributions | 5 | 11 |
Changes in foreign exchange rates | (4) | (22) |
Share of income (loss) | (3) | 1 |
Other | 0 | 0 |
Ending balance | 1,059 | 1,061 |
Other | Other | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Beginning balance | 6 | 8 |
Contributions | 0 | 1 |
Changes in foreign exchange rates | (1) | 0 |
Share of income (loss) | 0 | (2) |
Other | (4) | (1) |
Ending balance | $ 1 | $ 6 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property Plant and Equipment (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | $ 37,382 | $ 33,578 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 33,578 | 31,355 |
Additions | 4,843 | 4,306 |
Disposals | (24) | (67) |
Impairment reversal | 215 | |
Asset impairment | (1,244) | |
Depreciation and amortization | (1,869) | (1,608) |
Transfers between classifications | 0 | 0 |
Decommissioning and restoration provisions change in estimate | 289 | 870 |
Capitalized borrowing costs | 370 | 251 |
Changes in foreign exchange rates | (20) | (285) |
Closing net book value | 37,382 | 33,578 |
Net book value | 37,382 | 33,578 |
Exploration and Evaluation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 944 | 903 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 903 | 885 |
Additions | 45 | 22 |
Disposals | 0 | (1) |
Impairment reversal | 0 | |
Asset impairment | 0 | |
Depreciation and amortization | 0 | 0 |
Transfers between classifications | 0 | 0 |
Decommissioning and restoration provisions change in estimate | 0 | 0 |
Capitalized borrowing costs | 0 | 0 |
Changes in foreign exchange rates | (4) | (3) |
Closing net book value | 944 | 903 |
Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 14,681 | 14,535 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 14,535 | 14,182 |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Impairment reversal | 215 | |
Asset impairment | (261) | |
Depreciation and amortization | (373) | (288) |
Transfers between classifications | (50) | 65 |
Decommissioning and restoration provisions change in estimate | 250 | 814 |
Capitalized borrowing costs | 115 | 84 |
Changes in foreign exchange rates | (11) | (61) |
Closing net book value | 14,681 | 14,535 |
Land, Buildings, Plant and Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 9,138 | 7,577 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 7,577 | 8,352 |
Additions | 181 | 368 |
Disposals | (6) | (54) |
Impairment reversal | 0 | |
Asset impairment | (983) | |
Depreciation and amortization | (802) | (774) |
Transfers between classifications | 2,162 | 652 |
Decommissioning and restoration provisions change in estimate | 39 | 56 |
Capitalized borrowing costs | 0 | 0 |
Changes in foreign exchange rates | (13) | (40) |
Closing net book value | 9,138 | 7,577 |
Capitalized Production Stripping Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 2,688 | 2,644 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 2,644 | 2,644 |
Additions | 740 | 563 |
Disposals | 0 | (5) |
Impairment reversal | 0 | |
Asset impairment | 0 | |
Depreciation and amortization | (694) | (546) |
Transfers between classifications | 0 | 0 |
Decommissioning and restoration provisions change in estimate | 0 | 0 |
Capitalized borrowing costs | 0 | 0 |
Changes in foreign exchange rates | (2) | (12) |
Closing net book value | 2,688 | 2,644 |
Construction In Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 9,931 | 7,919 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 7,919 | 5,292 |
Additions | 3,877 | 3,353 |
Disposals | (18) | (7) |
Impairment reversal | 0 | |
Asset impairment | 0 | |
Depreciation and amortization | 0 | 0 |
Transfers between classifications | (2,112) | (717) |
Decommissioning and restoration provisions change in estimate | 0 | 0 |
Capitalized borrowing costs | 255 | 167 |
Changes in foreign exchange rates | 10 | (169) |
Closing net book value | 9,931 | 7,919 |
Cost | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 58,287 | 52,900 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 52,900 | 49,356 |
Closing net book value | 58,287 | 52,900 |
Cost | Exploration and Evaluation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 944 | 903 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 903 | 885 |
Closing net book value | 944 | 903 |
Cost | Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 21,362 | 20,758 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 20,758 | 20,155 |
Closing net book value | 21,362 | 20,758 |
Cost | Land, Buildings, Plant and Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 18,716 | 16,722 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 16,722 | 16,951 |
Closing net book value | 18,716 | 16,722 |
Cost | Capitalized Production Stripping Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 7,334 | 6,598 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 6,598 | 6,073 |
Closing net book value | 7,334 | 6,598 |
Cost | Construction In Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 9,931 | 7,919 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 7,919 | 5,292 |
Closing net book value | 9,931 | 7,919 |
Accumulated depreciation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | (20,905) | (19,322) |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (19,322) | (18,001) |
Closing net book value | (20,905) | (19,322) |
Accumulated depreciation | Exploration and Evaluation | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 0 | 0 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | 0 |
Closing net book value | 0 | 0 |
Accumulated depreciation | Mineral Properties | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | (6,681) | (6,223) |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (6,223) | (5,973) |
Closing net book value | (6,681) | (6,223) |
Accumulated depreciation | Land, Buildings, Plant and Equipment | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | (9,578) | (9,145) |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (9,145) | (8,599) |
Closing net book value | (9,578) | (9,145) |
Accumulated depreciation | Capitalized Production Stripping Costs | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | (4,646) | (3,954) |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | (3,954) | (3,429) |
Closing net book value | (4,646) | (3,954) |
Accumulated depreciation | Construction In Progress | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Net book value | 0 | 0 |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Opening net book value | 0 | 0 |
Closing net book value | $ 0 | $ 0 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Borrowing Costs - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment [abstract] | ||
Weighted average borrowing rate for capitalization of borrowing costs | 5.40% | 5.40% |
Goodwill - Schedule of Reconcil
Goodwill - Schedule of Reconciliation of Changes in Goodwill (Detail) - Goodwill - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | $ 1,093 | $ 1,101 |
Changes in foreign exchange rates | (2) | (8) |
Intangible assets and goodwill | 1,091 | 1,093 |
Steelmaking Coal Operations | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 702 | 702 |
Changes in foreign exchange rates | 0 | 0 |
Intangible assets and goodwill | 702 | 702 |
Quebrada Blanca | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Intangible assets and goodwill | 391 | 399 |
Changes in foreign exchange rates | (2) | (8) |
Intangible assets and goodwill | $ 389 | $ 391 |
Trade Accounts Payable and Ot_3
Trade Accounts Payable and Other Liabilities - Schedule of Trade Accounts Payable and Other Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about financial instruments [line items] | ||
Trade accounts payable and accruals | $ 1,653 | $ 1,428 |
Capital project accruals | 546 | 599 |
Payroll-related liabilities | 293 | 266 |
Accrued interest | 100 | 104 |
Commercial and government royalties | 325 | 229 |
Current portion of provisions (Note 23(a)) | 210 | 173 |
Settlement payables (Note 29(b)) | 9 | 6 |
Contract liabilities - consignment sales | 30 | 15 |
Other | 59 | 34 |
Trade account payable and other liabilities | 3,255 | 2,909 |
Sale and Purchase Contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement payables (Note 29(b)) | $ 39 | $ 61 |
Debt - Summary of Detailed Info
Debt - Summary of Detailed Information About Borrowings (Detail) $ in Millions, $ in Millions | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | $ 7,374 | $ 6,255 | ||
Less current portion of debt | (213) | (115) | ||
Borrowings | $ 7,161 | $ 6,140 | ||
4.5% notes due January 2021 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 4.50% | 4.50% | ||
4.75% notes due January 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 4.75% | 4.75% | 4.75% | 4.75% |
Gross debt | $ 190 | $ 190 | ||
3.75% notes due February 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 3.75% | 3.75% | 3.75% | 3.75% |
Gross debt | $ 137 | $ 139 | ||
3.9% notes due July 2030 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 3.90% | 3.90% | ||
Gross debt | $ 688 | 690 | ||
6.125% notes due October 2035 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 6.125% | 6.125% | ||
Gross debt | $ 761 | 764 | ||
6.0% notes due August 2040 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 6.00% | 6.00% | ||
Gross debt | $ 620 | 622 | ||
6.25% notes due July 2041 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 6.25% | 6.25% | ||
Gross debt | $ 997 | 1,001 | ||
5.2% notes due March 2042 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 5.20% | 5.20% | ||
Gross debt | $ 500 | 502 | ||
5.4% notes due February 2043 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Interest rate of notes | 5.40% | 5.40% | ||
Gross debt | $ 473 | 475 | ||
Notes issued | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 4,366 | 4,383 | ||
Quebrada Blanca Phase 2 project facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 2,785 | $ 2,300 | 1,423 | |
Revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 0 | 334 | ||
Antamina loan agreements | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 223 | 115 | ||
Face Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 5,906 | $ 4,977 | ||
Less current portion of debt | (168) | (90) | ||
Borrowings | 5,738 | 4,887 | ||
Face Value | 4.75% notes due January 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 150 | 150 | ||
Face Value | 3.75% notes due February 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 108 | 108 | ||
Face Value | 3.9% notes due July 2030 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 550 | 550 | ||
Face Value | 6.125% notes due October 2035 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 609 | 609 | ||
Face Value | 6.0% notes due August 2040 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 490 | 490 | ||
Face Value | 6.25% notes due July 2041 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 795 | 795 | ||
Face Value | 5.2% notes due March 2042 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 399 | 399 | ||
Face Value | 5.4% notes due February 2043 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 377 | 377 | ||
Face Value | Notes issued | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 3,478 | 3,478 | ||
Face Value | Quebrada Blanca Phase 2 project facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 2,252 | 1,147 | ||
Face Value | Revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 0 | 262 | ||
Face Value | Antamina loan agreements | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | $ 176 | $ 90 | ||
Fair Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 8,570 | 7,291 | ||
Less current portion of debt | (213) | (115) | ||
Borrowings | 8,357 | 7,176 | ||
Fair Value | 4.75% notes due January 2022 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 190 | 195 | ||
Fair Value | 3.75% notes due February 2023 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 140 | 144 | ||
Fair Value | 3.9% notes due July 2030 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 751 | 781 | ||
Fair Value | 6.125% notes due October 2035 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 1,005 | 1,005 | ||
Fair Value | 6.0% notes due August 2040 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 795 | 782 | ||
Fair Value | 6.25% notes due July 2041 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 1,349 | 1,309 | ||
Fair Value | 5.2% notes due March 2042 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 602 | 596 | ||
Fair Value | 5.4% notes due February 2043 | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 586 | 571 | ||
Fair Value | Notes issued | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 5,418 | 5,383 | ||
Fair Value | Quebrada Blanca Phase 2 project facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 2,929 | 1,459 | ||
Fair Value | Revolving credit facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | 0 | 334 | ||
Fair Value | Antamina loan agreements | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Gross debt | $ 223 | $ 115 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | 12 Months Ended | |||||||||
Dec. 31, 2021CAD ($)creditFacilitypayment | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Jan. 18, 2022USD ($) | Dec. 31, 2021USD ($)creditFacilitypayment | Dec. 24, 2021USD ($) | Oct. 15, 2021USD ($) | Jul. 12, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 7,374 | $ 6,255 | ||||||||
Proceeds from debt | 1,639 | 2,426 | ||||||||
Repayments of bonds, notes and debentures | $ 155 | $ 457 | ||||||||
Repayments of borrowings including purchase premiums, classified as financing activities | $ 276,000,000 | |||||||||
Number of credit facilities | creditFacility | 1 | 1 | ||||||||
Debt-to-capitalization ratio, maximum | 0.6 | 0.6 | ||||||||
Actual net debt-to-capitalization ratio | 0.22 | 0.24 | 0.22 | 0.24 | ||||||
Non-operating income (expense) | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of bonds, notes and debentures | $ 11 | |||||||||
Top of range | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Debt-to-capitalization ratio, maximum | 0.60 | 0.60 | ||||||||
4.5% notes due January 2021 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Borrowings, interest rate | 4.50% | 4.50% | ||||||||
Repayments of bonds, notes and debentures | 104,000,000 | |||||||||
4.75% notes due January 2022 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 190 | $ 190 | ||||||||
Borrowings, interest rate | 4.75% | 4.75% | 4.75% | 4.75% | ||||||
Repayments of bonds, notes and debentures | 52,000,000 | |||||||||
4.75% notes due January 2022 | Other disposals of assets [member] | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 150,000,000 | |||||||||
Borrowings, interest rate | 4.75% | |||||||||
3.75% notes due February 2023 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 137 | $ 139 | ||||||||
Borrowings, interest rate | 3.75% | 3.75% | 3.75% | 3.75% | ||||||
Repayments of bonds, notes and debentures | 112,000,000 | |||||||||
3.9% notes due July 2030 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 550,000,000 | |||||||||
Borrowings, interest rate | 3.90% | 3.90% | ||||||||
Borrowings, effective interest rate | 4.08% | 4.08% | ||||||||
Issued at percent of face value | 99.513% | 99.513% | ||||||||
Redemption price | 100.00% | 100.00% | ||||||||
Proceeds from debt | $ 542,000,000 | |||||||||
Revolving credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 0 | $ 334 | ||||||||
Undrawn borrowing facilities | $ 4,000,000,000 | |||||||||
Antamina credit facilities | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 158,000,000 | |||||||||
Quebrada Blanca Phase 2 project facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 2,785 | $ 1,423 | 2,300,000,000 | |||||||
Face amount of debt | $ 2,500,000,000 | |||||||||
Number of semi-annual payments | payment | 17 | 17 | ||||||||
$1B revolving facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Cancelled borrowing facilities | $ 1,000,000,000 | |||||||||
Outstanding notes, except for notes due October 2035 | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Redemption price | 100.00% | 100.00% | ||||||||
Outstanding Notes and Private Purchase | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of bonds, notes and debentures | 268,000,000 | |||||||||
Surety Bond | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 840 | |||||||||
Stand alone credit facility | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Outstanding letters of credit | $ 2,100 | |||||||||
2020 Tender Offer | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Repayments of bonds, notes and debentures | $ 13,000,000 | |||||||||
One billion loan agreement | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 225,000,000 | |||||||||
Short-Term Loan Agreement | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 18,000,000 | |||||||||
Antamina | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Ownership interest in joint operation | 22.50% | 22.50% | ||||||||
Antamina | One billion loan agreement | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 1,000,000,000 | |||||||||
Antamina | Short-Term Loan Agreement | ||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||
Principal amount | $ 80,000,000 | |||||||||
Borrowings, interest rate | 0.60% |
Debt - Scheduled Principal Paym
Debt - Scheduled Principal Payments (Details) $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 7,374 | $ 6,255 | |
Cost | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 5,906 | 7,487 | |
Cost | 2022 | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 168 | 213 | |
Cost | 2023 | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 373 | 472 | |
Cost | 2024 | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 265 | 336 | |
Cost | 2025 | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 265 | 336 | |
Cost | 2026 | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | 422 | 536 | |
Cost | Thereafter | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings | $ 4,413 | $ 5,594 |
Debt - Summary of Debt Continui
Debt - Summary of Debt Continuity (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Financial Instruments [Abstract] | ||||
Borrowings at beginning of period | $ 4,913 | $ 6,255 | $ 3,204 | $ 4,162 |
Cash flows | ||||
Proceeds from debt | 1,305 | 1,639 | 1,802 | 2,426 |
Redemption, purchase or repayment of debt | (124) | (155) | (338) | (457) |
Revolving credit facilities | (262) | (335) | 262 | 363 |
Non-cash changes | ||||
Loss on debt redemption or purchase | 0 | 0 | 8 | 11 |
Changes in foreign exchange rates | 0 | (10) | 0 | (216) |
Finance fees and discount amortization | (29) | (36) | (29) | (39) |
Other | 13 | 16 | 4 | 5 |
Borrowings at end of period | $ 5,816 | $ 7,374 | $ 4,913 | $ 6,255 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021CAD ($) | Dec. 31, 2018renewalOption | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2019CAD ($) | |
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Right-of-use assets | $ 704 | $ 730 | $ 762 | ||
Lease liabilities | 694 | 692 | $ 672 | ||
TAK | Subsidiaries | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease liabilities | $ 87 | 99 | |||
TAK | Next 18 years, after year 1 | Subsidiaries | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease liabilities | $ 6 | ||||
Fort Hills Energy Limited Partnership | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease term | 25 years | ||||
Number of renewal options | renewalOption | 4 | ||||
Renewal term | 5 years | ||||
Fort Hills Energy Limited Partnership | Joint operations | |||||
Disclosure of quantitative information about right-of-use assets [line items] | |||||
Lease liabilities | $ 195 | $ 199 |
Leases - Right-of-Use Assets (D
Leases - Right-of-Use Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Opening net book value | $ 730 | $ 762 |
Additions | 141 | 312 |
Depreciation | (163) | (166) |
Changes in foreign exchange rates and other | (4) | (178) |
Closing net book value | $ 704 | $ 730 |
Leases - Liability Continuity (
Leases - Liability Continuity (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Beginning balance | $ 692 | $ 672 |
Cash flows | ||
Principal payments | (139) | (163) |
Interest on lease liabilities (Note 20(c)) | (35) | (37) |
Non-cash changes | ||
Additions | 151 | 319 |
Interest expense (Note 9) | 35 | 37 |
Changes in foreign exchange and other | (10) | (136) |
Ending balance | 694 | 692 |
Current portion of lease liabilities (Note 19(c)) | (127) | (119) |
Lease liabilities (Note 19(c)) | $ 567 | $ 573 |
QB2 Advances from SMM_SC - Narr
QB2 Advances from SMM/SC - Narrative (Details) $ in Billions | Dec. 31, 2021CAD ($) |
Quebrada Blanca Phase 2 project facility | SSM/SC | |
Disclosure of detailed information about borrowings [line items] | |
Maximum borrowing capacity | $ 1.3 |
QB2 Advances from SMM_SC - Summ
QB2 Advances from SMM/SC - Summary of Amounts Outstanding (Details) $ in Millions, $ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 7,374 | $ 6,255 | ||
Face Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 5,906 | $ 4,977 | ||
Fair Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 8,570 | 7,291 | ||
Quebrada Blanca Phase 2 project facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,300 | 2,785 | 1,423 | |
Quebrada Blanca Phase 2 project facility | SSM/SC | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 1,263 | 934 | ||
Quebrada Blanca Phase 2 project facility | Face Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,252 | 1,147 | ||
Quebrada Blanca Phase 2 project facility | Face Value | SSM/SC | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 1,003 | $ 739 | ||
Quebrada Blanca Phase 2 project facility | Fair Value | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | 2,929 | 1,459 | ||
Quebrada Blanca Phase 2 project facility | Fair Value | SSM/SC | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings | $ 1,288 | $ 941 |
QB2 Advances from SMM_SC -Summa
QB2 Advances from SMM/SC -Summary of Debt Continuity (Details) $ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2021USD ($) | Dec. 31, 2021CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020CAD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings at beginning of period | $ 4,913 | $ 6,255 | $ 3,204 | $ 4,162 |
Non-cash changes | ||||
Finance fees and discount amortization | (29) | (36) | (29) | (39) |
Changes in foreign exchange rates | 0 | (10) | 0 | (216) |
Borrowings at end of period | 5,816 | 7,374 | 4,913 | 6,255 |
SSM/SC | Quebrada Blanca Phase 2 project facility | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Borrowings at beginning of period | 734 | 934 | 702 | 912 |
Cash flows | ||||
Advances | 262 | 326 | 31 | 41 |
Non-cash changes | ||||
Finance fees and discount amortization | 1 | 1 | 1 | 1 |
Changes in foreign exchange rates | 0 | 2 | 0 | (20) |
Borrowings at end of period | $ 997 | $ 1,263 | $ 734 | $ 934 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Income Taxes (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||
Tax expense (recovery) at the Canadian statutory income tax rate of 26.54% (2020 – 26.58%) | $ 1,203 | $ (302) |
Tax effect of: | ||
Resource taxes | 426 | 106 |
Resource and depletion allowances | (61) | (68) |
Non-deductible expenses (non-taxable income) | 69 | 28 |
Tax pools not recognized (recognition of previously unrecognized tax pools) | (56) | 5 |
Withholding taxes on foreign earnings | 60 | 40 |
Difference in tax rates in foreign jurisdictions | 15 | 1 |
Revisions to prior year estimates | (14) | (4) |
Tax rate effect from noncontrolling interests | (15) | (2) |
Other | (10) | 4 |
Provision for income taxes | 1,617 | (192) |
Represented by: | ||
Current income taxes | 978 | 374 |
Deferred income taxes | $ 639 | $ (566) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Expense Charged (Credited) to Income Statement (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | $ (271) | $ (211) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 105 | 57 |
Through OCI | 5 | 3 |
Ending balance | (161) | (271) |
Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 5,383 | 5,902 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 534 | (509) |
Through OCI | 56 | (10) |
Ending balance | 5,973 | 5,383 |
Net operating loss and capital loss carryforwards | Deferred Tax Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (247) | (190) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 106 | 57 |
Through OCI | 0 | 0 |
Ending balance | (141) | (247) |
Net operating loss and capital loss carryforwards | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (1,038) | (642) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 503 | (408) |
Through OCI | 3 | 12 |
Ending balance | (532) | (1,038) |
Property, plant and equipment | Deferred Tax Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 168 | 144 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 12 | (22) |
Through OCI | 0 | (2) |
Ending balance | 180 | 168 |
Property, plant and equipment | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 7,369 | 7,101 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 176 | 294 |
Through OCI | 1 | (26) |
Ending balance | 7,546 | 7,369 |
Decommissioning and restoration provisions | Deferred Tax Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (158) | (123) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | (32) | 35 |
Through OCI | 0 | 0 |
Ending balance | (190) | (158) |
Decommissioning and restoration provisions | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (962) | (637) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | (86) | (327) |
Through OCI | (2) | 2 |
Ending balance | (1,050) | (962) |
Unrealized foreign exchange | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (88) | (116) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 1 | 11 |
Through OCI | 2 | 17 |
Ending balance | (85) | (88) |
Withholding taxes | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 95 | 91 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 6 | 6 |
Through OCI | (1) | (2) |
Ending balance | 100 | 95 |
Inventories | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | 110 | 91 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 47 | 19 |
Through OCI | (1) | 0 |
Ending balance | 156 | 110 |
Other temporary differences | Deferred Tax Assets | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (34) | (42) |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | 19 | (13) |
Through OCI | 5 | 5 |
Ending balance | (10) | (34) |
Other temporary differences | Deferred Tax Liabilities | ||
Reconciliation of changes in deferred tax liability (asset) [abstract] | ||
Beginning balance | (103) | 14 |
Changes in deferred tax liability (asset) [abstract] | ||
Through Profit (Loss) | (113) | (104) |
Through OCI | 54 | (13) |
Ending balance | $ (162) | $ (103) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of Income Taxes [line items] | ||
Unrecognized deferred tax assets | $ 293 | $ 296 |
Unrecognized deferred tax liabilities | 803 | 731 |
Canada | ||
Disclosure of Income Taxes [line items] | ||
Unused tax losses | 1,160 | 3,810 |
Chile | ||
Disclosure of Income Taxes [line items] | ||
Unused tax losses | $ 972 | $ 847 |
Antamina | ||
Disclosure of Income Taxes [line items] | ||
Proportion of ownership interest in joint operation | 22.50% |
Retirement Benefit Plans - Summ
Retirement Benefit Plans - Summary of Actuarial Valuation of Plans (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Interest income (expense) | $ (5) | $ (5) |
Represented by: | ||
Pension assets (Note 13) | 449 | 301 |
Accrued retirement benefit liability | (517) | (564) |
Defined Benefit Pension Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | (182) | |
Balance at end of year liability (asset) | (352) | (182) |
Funding surplus (deficit) | 451 | 254 |
Represented by: | ||
Pension assets (Note 13) | 449 | 301 |
Accrued retirement benefit liability | (97) | (119) |
Net accrued retirement benefit asset (liability) | 352 | 182 |
Defined Benefit Pension Plans | Defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 2,558 | 2,337 |
Current service cost | 72 | 55 |
Past service costs arising from plan improvements | 13 | 0 |
Benefits paid | (144) | (146) |
Interest income (expense) | 59 | 69 |
Obligation experience adjustments | 4 | 27 |
Effect from change in financial assumptions | (159) | 221 |
Effect from change in demographic assumptions | 4 | 1 |
Changes in foreign exchange rates | 0 | (6) |
Balance at end of year liability (asset) | 2,407 | 2,558 |
Represented by: | ||
Net accrued retirement benefit asset (liability) | (2,407) | (2,558) |
Defined Benefit Pension Plans | Fair value of plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | (2,812) | (2,659) |
Benefits paid | 144 | 146 |
Interest income (expense) | (66) | (79) |
Changes in foreign exchange rates | 0 | 5 |
Return on plan assets, excluding amounts included in interest income | 102 | 204 |
Contributions by the employer | 22 | 21 |
Balance at end of year liability (asset) | (2,858) | (2,812) |
Represented by: | ||
Net accrued retirement benefit asset (liability) | 2,858 | 2,812 |
Defined Benefit Pension Plans | Less effect of the asset ceiling | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 72 | 63 |
Interest income (expense) | 2 | 2 |
Change in asset ceiling | 25 | 7 |
Balance at end of year liability (asset) | 99 | 72 |
Represented by: | ||
Net accrued retirement benefit asset (liability) | (99) | (72) |
Non-Pension Post- Retirement Benefit Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 445 | |
Balance at end of year liability (asset) | 420 | 445 |
Funding surplus (deficit) | (420) | (445) |
Represented by: | ||
Pension assets (Note 13) | 0 | 0 |
Accrued retirement benefit liability | (420) | (445) |
Net accrued retirement benefit asset (liability) | (420) | (445) |
Non-Pension Post- Retirement Benefit Plans | Defined benefit obligation | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 445 | 404 |
Current service cost | 14 | 19 |
Past service costs arising from plan improvements | 3 | 0 |
Benefits paid | (14) | (17) |
Interest income (expense) | 11 | 13 |
Obligation experience adjustments | (13) | (3) |
Effect from change in financial assumptions | (24) | 33 |
Effect from change in demographic assumptions | 3 | (3) |
Changes in foreign exchange rates | (5) | (1) |
Balance at end of year liability (asset) | 420 | 445 |
Represented by: | ||
Net accrued retirement benefit asset (liability) | (420) | (445) |
Non-Pension Post- Retirement Benefit Plans | Fair value of plan assets | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 0 | 0 |
Benefits paid | 14 | 17 |
Interest income (expense) | 0 | 0 |
Changes in foreign exchange rates | 0 | 0 |
Return on plan assets, excluding amounts included in interest income | 0 | 0 |
Contributions by the employer | 14 | 17 |
Balance at end of year liability (asset) | 0 | 0 |
Represented by: | ||
Net accrued retirement benefit asset (liability) | 0 | 0 |
Non-Pension Post- Retirement Benefit Plans | Less effect of the asset ceiling | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Balance at beginning of year liability (asset) | 0 | 0 |
Interest income (expense) | 0 | 0 |
Change in asset ceiling | 0 | 0 |
Balance at end of year liability (asset) | 0 | 0 |
Represented by: | ||
Net accrued retirement benefit asset (liability) | $ 0 | $ 0 |
Retirement Benefit Plans - Addi
Retirement Benefit Plans - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of net defined benefit liability (asset) [line items] | ||
Surplus plan, not recognized | $ 99 | $ 72 |
Defined contribution expense | 52 | $ 50 |
Defined Benefit Pension Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Expected contribution to defined benefit pension plans for the next annual reporting period | $ 20 | |
Weighted average duration of defined benefit obligation | 15 years | |
Non-Pension Post- Retirement Benefit Plans | ||
Disclosure of net defined benefit liability (asset) [line items] | ||
Weighted average duration of defined benefit obligation | 15 years |
Retirement Benefit Plans - Su_2
Retirement Benefit Plans - Summary of Weighted Average Assumptions Used to Calculate the Defined Benefit Obligation (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Pension Plans | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 2.88% | 2.39% |
Rate of increase in future compensation | 3.25% | 3.25% |
Non-Pension Post- Retirement Benefit Plans | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Discount rate | 2.96% | 2.50% |
Rate of increase in future compensation | 3.25% | 3.25% |
Medical trend rate | 5.00% | 5.00% |
Retirement Benefit Plans - Su_3
Retirement Benefit Plans - Summary of Sensitivity of Defined Benefit Obligation to Changes in Weighted Average Assumptions (Detail) | Dec. 31, 2021 | Dec. 31, 2020 |
Discount rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in Assumption | 1.00% | 1.00% |
Increase in Assumption | (1300.00%) | (1200.00%) |
Decrease in Assumption | 1500.00% | 1400.00% |
Rate of increase in future compensation | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in Assumption | 1.00% | 1.00% |
Increase in Assumption | 100.00% | 100.00% |
Decrease in Assumption | (100.00%) | (100.00%) |
Medical cost claim trend rate | ||
Disclosure of sensitivity analysis for actuarial assumptions [line items] | ||
Change in Assumption | 1.00% | 1.00% |
Increase in Assumption | 100.00% | 100.00% |
Decrease in Assumption | (100.00%) | (100.00%) |
Retirement Benefit Plans - Su_4
Retirement Benefit Plans - Summary of Life Expectancies for Employee Retiring at Age 65 (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefits [Abstract] | ||
Retiring at the end of the reporting period, Male | 85.3 years | 85.3 years |
Retiring 20 years after the end of the reporting period, Male | 86.4 years | 86.4 years |
Retiring at the end of the reporting period, Female | 87.7 years | 87.7 years |
Retiring 20 years after the end of the reporting period, Female | 88.7 years | 88.7 years |
Retirement Benefit Plans - Su_5
Retirement Benefit Plans - Summary of Defined Benefit Pension Plan Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value of plan assets [line items] | ||
Equity securities (as a percent) | 37.00% | 38.00% |
Debt securities (as a percent) | 49.00% | 49.00% |
Real estate and other (as a percent) | 14.00% | 13.00% |
Quoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities | $ 1,069 | $ 1,058 |
Debt securities | 1,389 | 1,385 |
Real estate and other | 71 | 62 |
Unquoted | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 0 | 0 |
Debt securities | 0 | 0 |
Real estate and other | $ 329 | $ 307 |
Provisions and Other Liabilit_3
Provisions and Other Liabilities - Summary of Provisions and Other Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of other provisions [line items] | ||
Provisions | $ 3,813 | $ 3,484 |
Derivative liabilities (net of current portion of $9 (2020 – $6)) | 51 | 26 |
QB2 variable consideration to IMSA (Note 10(a)) | 98 | 0 |
Other IMSA payable | 61 | 60 |
Other liabilities | 83 | 20 |
Other liabilities and provisions | 4,354 | 3,731 |
Settlement payables (Note 29(b)) | 9 | 6 |
Neptune Bulk Terminals Inc. | ||
Disclosure of other provisions [line items] | ||
Obligation to Neptune Bulk Terminals | 170 | 111 |
Preferential Dividend | ||
Disclosure of other provisions [line items] | ||
ENAMI preferential dividend liability (Note 10(a)) | $ 78 | $ 30 |
Provisions and Other Liabilit_4
Provisions and Other Liabilities - Summary of Movements in Provisions (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | $ 3,657 | |
Settled during the year | (128) | |
Change in discount rate | 322 | |
Change in amount and timing of cash flows | 77 | |
Accretion (Note 9) | 155 | |
Other | (60) | |
Changes in foreign exchange rates | 0 | |
Provisions, ending balance | 4,023 | |
Less current portion of provisions (Note 17) | (210) | |
Long-term provisions | 3,813 | $ 3,484 |
Decommissioning and Restoration Provisions | ||
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | 3,342 | |
Settled during the year | (90) | |
Change in discount rate | 322 | |
Change in amount and timing of cash flows | 2 | |
Accretion (Note 9) | 151 | |
Other | (4) | |
Changes in foreign exchange rates | 2 | |
Provisions, ending balance | 3,725 | |
Less current portion of provisions (Note 17) | (144) | |
Long-term provisions | 3,581 | |
Other Provisions | ||
Reconciliation of changes in other provisions [abstract] | ||
Provisions, beginning balance | 315 | |
Settled during the year | (38) | |
Change in discount rate | 0 | |
Change in amount and timing of cash flows | 75 | |
Accretion (Note 9) | 4 | |
Other | (56) | |
Changes in foreign exchange rates | (2) | |
Provisions, ending balance | 298 | |
Less current portion of provisions (Note 17) | (66) | |
Long-term provisions | $ 232 |
Provisions and Other Liabilit_5
Provisions and Other Liabilities - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | |
Disclosure of other provisions [line items] | ||
Other provisions | $ 4,023 | $ 3,657 |
Other environment related provision | ||
Disclosure of other provisions [line items] | ||
Provisions | 73 | 101 |
Provision for decommissioning, restoration and rehabilitation costs | ||
Disclosure of other provisions [line items] | ||
Other provisions | 3,725 | 3,342 |
Water quality management costs | ||
Disclosure of other provisions [line items] | ||
Other provisions | $ 1,300 | 1,200 |
Extended period | 100 years | |
Provision for decommissioning, restoration and rehabilitation costs, closed operations | ||
Disclosure of other provisions [line items] | ||
Other provisions | $ 721 | 712 |
Steelmaking Coal | Water quality management costs | ||
Disclosure of other provisions [line items] | ||
Other provisions | $ 769 | $ 673 |
Discount rate | Bottom of range | Provision for decommissioning, restoration and rehabilitation costs | ||
Disclosure of other provisions [line items] | ||
Nominal discount rate | 0.0386 | 0.0405 |
Discount rate | Top of range | Provision for decommissioning, restoration and rehabilitation costs | ||
Disclosure of other provisions [line items] | ||
Nominal discount rate | 0.0535 | 0.0585 |
Inflation rate | Provision for decommissioning, restoration and rehabilitation costs | ||
Disclosure of other provisions [line items] | ||
Nominal discount rate | 0.0200 | 0.0200 |
Equity - Additional Information
Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | Feb. 23, 2022$ / shares | Dec. 31, 2021CAD ($)$ / shares | Sep. 30, 2021$ / shares | Jun. 30, 2021$ / shares | Mar. 31, 2021$ / shares | Dec. 31, 2020CAD ($)$ / shares | Sep. 30, 2020$ / shares | Jun. 30, 2020$ / shares | Mar. 31, 2020$ / shares | Dec. 31, 2021CAD ($)sharesvote_per_share$ / shares | Dec. 31, 2021CAD ($)$ / shares | Dec. 31, 2020CAD ($)shares$ / shares | Dec. 31, 2020CAD ($)$ / shares | Dec. 31, 2017consecutive_trading_days | Nov. 02, 2021CAD ($) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Number of share options issuable for grants (in shares) | shares | 46,000,000 | ||||||||||||||
Share option, available for grant (in shares) | shares | 12,187,148 | ||||||||||||||
Share option, granted (in shares) | shares | 2,519,455 | 6,314,000 | |||||||||||||
Weighted average exercise price of share options granted in share-based payment arrangement | $ / shares | $ 29.04 | $ 14.42 | |||||||||||||
Weighted average exercise price | $ / shares | $ 10.83 | $ 4.76 | |||||||||||||
Share option granted, vesting period | 3 years | ||||||||||||||
Share option granted, term | 10 years | ||||||||||||||
Average share price (in usd per share) | $ / shares | $ 29.25 | $ 16.15 | |||||||||||||
Share based compensation expense (recovery) | $ 125 | $ 47 | |||||||||||||
Dilutive shares were not included in the diluted earnings per share | shares | 7,700,774,000 | ||||||||||||||
Dividends declared and paid per share | $ 106 | 106 | |||||||||||||
Payments to acquire or redeem entity's shares | 0 | 207 | |||||||||||||
Share Options | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Share based compensation expense (recovery) | 28 | 23 | |||||||||||||
PSUs | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Consecutive trading days | consecutive_trading_days | 20 | ||||||||||||||
Share options granted percentage | 50.00% | ||||||||||||||
PSUs | Bottom of range | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Vesting percentage | 0.00% | ||||||||||||||
PSUs | Top of range | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Vesting percentage | 200.00% | ||||||||||||||
Deferred share units (DSUs), restricted share units (RSUs), performance share units (PSUs) and performance deferred share units (PDSUs) | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Share based compensation expense (recovery) | 97 | 24 | |||||||||||||
Total liability and intrinsic value for vested Units | $ 160 | $ 83 | $ 160 | $ 160 | $ 83 | $ 83 | |||||||||
Class A Common Shares | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Number of votes per share | vote_per_share | 100 | ||||||||||||||
Dividends paid, ordinary shares per share | $ / shares | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||||||
Class A Common Shares | Potential ordinary share transactions [member] | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Dividends paid, ordinary shares per share | $ / shares | $ 0.625 | ||||||||||||||
Class B Subordinate Voting Shares | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Number of votes per share | vote_per_share | 1 | ||||||||||||||
Dividends paid, ordinary shares per share | $ / shares | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||||||
Stock repurchase program, term | 1 year | ||||||||||||||
Purchase of voting shares under normal course issuer bid (in shares) | shares | 0 | 16,292,441 | |||||||||||||
Payments to acquire or redeem entity's shares | $ 207 | ||||||||||||||
Treasury stock, repurchase authorization amount | $ 40 | ||||||||||||||
Class B Subordinate Voting Shares | Potential ordinary share transactions [member] | |||||||||||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||||||||||||||
Dividends paid, ordinary shares per share | $ / shares | $ 0.625 |
Equity - Summary of Class A Com
Equity - Summary of Class A Common Shares and Class B Subordinate Voting Shares Issued and Outstanding (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of classes of share capital [line items] | ||
Beginning balance (in shares) | 531,100 | |
Options exercised (in shares) | 3,189 | 156 |
Ending balance (in shares) | 534,200 | 531,100 |
Class A Common Shares | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance (in shares) | 7,765 | 7,765 |
Options exercised (in shares) | 0 | 0 |
Acquired and cancelled pursuant to normal course issuer bid (in shares) | 0 | |
Ending balance (in shares) | 7,765 | 7,765 |
Class B Subordinate Voting Shares | ||
Disclosure of classes of share capital [line items] | ||
Beginning balance (in shares) | 523,381 | 539,528 |
Options exercised (in shares) | 3,067 | 145 |
Acquired and cancelled pursuant to normal course issuer bid (in shares) | (16,292) | |
Ending balance (in shares) | 526,448 | 523,381 |
Equity - Summary of Weighted Av
Equity - Summary of Weighted Average Assumptions (Detail) | 12 Months Ended | |
Dec. 31, 2021yr$ / shares | Dec. 31, 2020yr$ / shares | |
Equity [abstract] | ||
Weighted average exercise price | $ / shares | $ 29.04 | $ 14.42 |
Dividend yield | 0.69% | 2.13% |
Risk-free interest rate | 0.75% | 1.19% |
Expected option life | yr | 6.3 | 6.1 |
Expected volatility | 40.00% | 41.00% |
Forfeiture rate | 0.78% | 1.16% |
Equity - Summary of Outstanding
Equity - Summary of Outstanding Share Options (Detail) | 12 Months Ended | |
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares$ / shares | |
Equity [abstract] | ||
Beginning balance (in shares) | shares | 25,250,000 | 20,152,000 |
Granted (in shares) | shares | 2,519,455 | 6,314,000 |
Exercised (in shares) | shares | (3,189,000) | (156,000) |
Forfeited (in shares) | shares | (186,000) | (293,000) |
Expired (in shares) | shares | (714,000) | (767,000) |
Ending balance (in shares) | shares | 23,680,000 | 25,250,000 |
Vested and exercisable at end of year (in shares) | shares | 16,543,000 | 17,368,000 |
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 20.61 | $ 23.02 |
Granted (in dollars per share) | $ / shares | 29.04 | 14.42 |
Exercised (in dollars per share) | $ / shares | 16.03 | 8.33 |
Forfeited (in dollars per share) | $ / shares | 25.43 | 20.97 |
Expired (in dollars per share) | $ / shares | 52.86 | 35.14 |
Outstanding at ending of year (in dollars per share) | $ / shares | 21.12 | 20.61 |
Vested and exercisable at end of year (in dollars per share) | $ / shares | $ 21.29 | $ 21.76 |
Equity - Summary of Information
Equity - Summary of Information Relating to Share Options Outstanding (Detail) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021shares$ / shares | Dec. 31, 2020shares | Dec. 31, 2019shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 23,680 | 25,250 | 20,152 |
Weighted Average Remaining Life of Outstanding Options (months) | 65 months | ||
Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 5.34 | ||
Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 39.90 | ||
$5.34 — $13.57 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 4,096 | ||
Weighted Average Remaining Life of Outstanding Options (months) | 49 months | ||
$5.34 — $13.57 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 5.34 | ||
$5.34 — $13.57 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 13.57 | ||
$13.58 — $14.71 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 4,876 | ||
Weighted Average Remaining Life of Outstanding Options (months) | 98 months | ||
$13.58 — $14.71 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 13.58 | ||
$13.58 — $14.71 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 14.71 | ||
$14.72 — $26.53 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 5,406 | ||
Weighted Average Remaining Life of Outstanding Options (months) | 43 months | ||
$14.72 — $26.53 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 14.72 | ||
$14.72 — $26.53 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 26.53 | ||
$26.54 — $29.43 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 5,700 | ||
Weighted Average Remaining Life of Outstanding Options (months) | 88 months | ||
$26.54 — $29.43 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 26.54 | ||
$26.54 — $29.43 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 29.43 | ||
$29.44 — $39.90 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Outstanding Share Options (in shares) | shares | 3,602 | ||
Weighted Average Remaining Life of Outstanding Options (months) | 36 months | ||
$29.44 — $39.90 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 29.44 | ||
$29.44 — $39.90 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Exercise Price Range (in dollars per share) | $ 39.90 |
Equity - Summary of Outstandi_2
Equity - Summary of Outstanding Units (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding (in units) | 7,040 | 5,625 |
Vested (in units) | 2,593 | 2,625 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding (in units) | 2,526 | 2,555 |
Vested (in units) | 2,526 | 2,555 |
RSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding (in units) | 2,707 | 1,408 |
Vested (in units) | 0 | 0 |
PSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding (in units) | 1,622 | 1,449 |
Vested (in units) | 0 | 0 |
PDSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Outstanding (in units) | 185 | 213 |
Vested (in units) | 67 | 70 |
Equity - Summary of Accumulated
Equity - Summary of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Currency translation differences: | ||
Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(3)) | $ (2) | $ 0 |
Remeasurements of retirement benefit plans (net of taxes of $(91) and $29) | 171 | (50) |
Total other comprehensive income (loss) | 126 | (112) |
Foreign exchange differences on debt designated as a hedge of our investment in foreign subsidiaries, tax | (2) | (17) |
Change in fair value of available-for-sale financial instruments, taxes | 0 | 0 |
Remeasurements of retirement benefit plans, tax | (91) | 29 |
Accumulated other comprehensive income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive income – beginning of year | 247 | 309 |
Currency translation differences: | ||
Unrealized losses on translation of foreign subsidiaries | (50) | (197) |
Foreign exchange differences on debt designated as a hedge of our investment in foreign subsidiaries (net of taxes of $(2) and $(17)) (Note 29(b)) | 11 | 111 |
Other comprehensive income net of tax exchange differences on translation | (39) | (86) |
Gain (loss) on marketable equity and debt securities (net of taxes of $1 and $(3)) | (6) | 24 |
Remeasurements of retirement benefit plans (net of taxes of $(91) and $29) | 171 | (50) |
Total other comprehensive income (loss) | 126 | (112) |
Less remeasurements of retirement benefit plans recorded in retained earnings | (171) | 50 |
Accumulated other comprehensive income – end of year | 202 | 247 |
Change in fair value of available-for-sale financial instruments, taxes | $ 1 | $ (3) |
Equity - Summary of Basic and D
Equity - Summary of Basic and Diluted Earnings Per Share (Detail) - CAD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [abstract] | ||
Net basic and diluted profit (loss) attributable to shareholders of the company | $ 2,868 | $ (864) |
Weighted average shares outstanding (in shares) | 532,340 | 534,378 |
Dilutive effect of share options (in shares) | 7,931 | 0 |
Weighted average diluted shares outstanding (in shares) | 540,271 | 534,378 |
Basic earnings (loss) per share (in dollars per share) | $ 5.39 | $ (1.62) |
Diluted earnings (loss) per share (in dollars per share) | $ 5.31 | $ (1.62) |
Non-Controlling Interests - Sum
Non-Controlling Interests - Summary of Information About Subsidiaries with Non-controlling Interests and Non-controlling Interest Balances (Detail) - CAD ($) $ in Millions | Mar. 29, 2019 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2020 |
Disclosure of subsidiaries [line items] | ||||
Non-controlling interests | $ 768 | $ 669 | ||
Carmen de Andacollo | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of Ownership Interest Held by Non-Controlling Interest | 10.00% | |||
Percentage of Voting Rights Held by Non-Controlling Interest | 10.00% | |||
Non-controlling interests | $ 24 | 26 | ||
Elkview Mine Limited Partnership | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of Ownership Interest Held by Non-Controlling Interest | 5.00% | |||
Percentage of Voting Rights Held by Non-Controlling Interest | 5.00% | |||
Non-controlling interests | $ 86 | 74 | ||
Compañía Minera Zafranal S.A.C. | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of Ownership Interest Held by Non-Controlling Interest | 20.00% | |||
Percentage of Voting Rights Held by Non-Controlling Interest | 20.00% | |||
Non-controlling interests | $ 46 | 43 | ||
Quebrada Blanca | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of Ownership Interest Held by Non-Controlling Interest | 40.00% | |||
Percentage of Voting Rights Held by Non-Controlling Interest | 40.00% | |||
Non-controlling interests | $ 612 | $ 526 | ||
Quebrada Blanca | SSM/SC | ||||
Disclosure of subsidiaries [line items] | ||||
Portion of additional interest acquired | 30.00% | |||
Quebrada Blanca | ENAMI | ||||
Disclosure of subsidiaries [line items] | ||||
Percentage of Ownership Interest Held by Non-Controlling Interest | 10.00% |
Non-Controlling Interests - Sch
Non-Controlling Interests - Schedule of Financial Statements (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Summarized balance sheet | ||
Current assets | $ 6,103 | $ 4,000 |
Current liabilities | 3,760 | 3,245 |
Accumulated non-controlling interests | 768 | 669 |
Summarized statement of comprehensive income (loss) | ||
Revenue | 13,481 | 8,948 |
Loss for the period | 2,915 | (944) |
Other comprehensive income (loss) | 122 | (126) |
Total comprehensive income (loss) | 3,037 | (1,070) |
Loss allocated to non-controlling interests | 47 | (80) |
Summarized cash flows | ||
Cash flows from operating activities | 4,738 | 1,563 |
Cash flows from investing activities | (4,819) | (3,672) |
Cash flows from financing activities | 1,056 | 1,528 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 5 |
Net increase (decrease) in cash and cash equivalents | 977 | (576) |
Quebrada Blanca | ||
Summarized balance sheet | ||
Current assets | 166 | 221 |
Current liabilities | 731 | 698 |
Current net assets | (565) | (477) |
Non-current assets | 11,699 | 8,575 |
Non-current liabilities | 7,328 | 4,841 |
Non-current net assets | 4,371 | 3,734 |
Net assets | 3,806 | 3,257 |
Accumulated non-controlling interests | 612 | 526 |
Summarized statement of comprehensive income (loss) | ||
Revenue | 136 | 116 |
Loss for the period | (182) | (291) |
Other comprehensive income (loss) | (10) | (47) |
Total comprehensive income (loss) | (192) | (338) |
Loss allocated to non-controlling interests | (20) | (95) |
Summarized cash flows | ||
Cash flows from operating activities | (516) | (442) |
Cash flows from investing activities | (2,597) | (1,657) |
Cash flows from financing activities | 3,117 | 1,668 |
Effect of exchange rate changes on cash and cash equivalents | 2 | 8 |
Net increase (decrease) in cash and cash equivalents | $ 6 | $ (423) |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) - Elk Valley Water Quality $ in Millions | 1 Months Ended | |
Jan. 31, 2022CAD ($) | Mar. 31, 2021count | |
Disclosure of contingent liabilities [line items] | ||
Number of claims settled | count | 2 | |
Entering into significant commitments or contingent liabilities | ||
Disclosure of contingent liabilities [line items] | ||
Fines paid | $ 2 | |
Environmental contributions per offence | 28 | |
Environmental contribution | $ 60 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Sep. 30, 2007 | Dec. 31, 2022 | Dec. 31, 2021CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2018CAD ($) | |
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | $ 1,330,000,000 | |||||||
Royalty expense | 373,000,000 | $ 266,000,000 | ||||||
2022 | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | 1,270,000,000 | |||||||
Within two to five years | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | 62,000,000 | |||||||
Antamina | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | $ 113,000,000 | |||||||
Ownership interest in joint operation | 22.50% | 22.50% | ||||||
Royalty percentage | 7.40% | 7.40% | ||||||
Royalty expense | $ 50,000,000 | 27,000,000 | ||||||
Steelmaking Coal Operations | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | 67,000,000 | |||||||
QB2 | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | 1,100,000,000 | |||||||
TAK | ||||||||
Disclosure of commitments [line items] | ||||||||
Royalty percentage | 35.00% | 25.00% | ||||||
Increase in net proceeds of production royalty | 5.00% | |||||||
Maximum royalty percentage | 50.00% | |||||||
Royalty expense | $ 255 | $ 175 | ||||||
TAK | Forecast | ||||||||
Disclosure of commitments [line items] | ||||||||
Royalty percentage | 40.00% | |||||||
Quebrada Blanca | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | $ 277,000,000 | |||||||
Purchase period | 18 years | 18 years | ||||||
TML | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | $ 75,000,000 | |||||||
Purchase period | 20 years | |||||||
Optional purchase period extension | 10 years | |||||||
Purchase commitment percentage increase per year | 2.00% | |||||||
Carmen de Andacollo | ||||||||
Disclosure of commitments [line items] | ||||||||
Purchase commitment per year | $ 52,000,000 | |||||||
Purchase period | 14 years | 14 years |
Segmented Information - Additio
Segmented Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021segment | |
Operating Segments [Abstract] | |
Number of reportable segments | 5 |
Segmented Information - Schedul
Segmented Information - Schedule of Operating Segments (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | $ 13,481 | $ 8,948 |
Cost of sales | (8,400) | (7,615) |
Gross profit | 5,081 | 1,333 |
Impairment reversal (Note 7(a)) | 215 | (1,244) |
Other operating income (expense) | (446) | (999) |
Profit (loss) from operations | 4,850 | (910) |
Net finance income (expense) | (210) | (268) |
Non-operating income (expense) | (105) | 43 |
Share of loss of associates and joint ventures | (3) | (1) |
Profit (loss) before taxes | 4,532 | (1,136) |
Capital expenditures | 4,713 | 3,628 |
Goodwill (Note 16) | 1,091 | 1,093 |
Total assets | 47,368 | 41,278 |
Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 13,992 | 9,412 |
Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | (511) | (464) |
Copper | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 3,452 | 2,419 |
Cost of sales | (1,711) | (1,560) |
Gross profit | 1,741 | 859 |
Impairment reversal (Note 7(a)) | 215 | 0 |
Other operating income (expense) | (14) | (323) |
Profit (loss) from operations | 1,942 | 536 |
Net finance income (expense) | (116) | (151) |
Non-operating income (expense) | (137) | 38 |
Share of loss of associates and joint ventures | (3) | 1 |
Profit (loss) before taxes | 1,686 | 424 |
Capital expenditures | 3,074 | 1,990 |
Goodwill (Note 16) | 389 | 391 |
Total assets | 18,077 | 14,546 |
Copper | Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 3,452 | 2,419 |
Copper | Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 0 | 0 |
Zinc | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 3,063 | 2,700 |
Cost of sales | (2,375) | (2,177) |
Gross profit | 688 | 523 |
Impairment reversal (Note 7(a)) | 0 | 0 |
Other operating income (expense) | (41) | (98) |
Profit (loss) from operations | 647 | 425 |
Net finance income (expense) | (47) | (44) |
Non-operating income (expense) | 4 | (4) |
Share of loss of associates and joint ventures | 0 | 0 |
Profit (loss) before taxes | 604 | 377 |
Capital expenditures | 259 | 247 |
Goodwill (Note 16) | 0 | 0 |
Total assets | 4,401 | 4,006 |
Zinc | Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 3,574 | 3,164 |
Zinc | Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | (511) | (464) |
Steelmaking Coal | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 6,251 | 3,375 |
Cost of sales | (3,466) | (3,098) |
Gross profit | 2,785 | 277 |
Impairment reversal (Note 7(a)) | 0 | 0 |
Other operating income (expense) | 153 | (193) |
Profit (loss) from operations | 2,938 | 84 |
Net finance income (expense) | (91) | (56) |
Non-operating income (expense) | 0 | 13 |
Share of loss of associates and joint ventures | 0 | 0 |
Profit (loss) before taxes | 2,847 | 41 |
Capital expenditures | 1,284 | 1,284 |
Goodwill (Note 16) | 702 | 702 |
Total assets | 18,390 | 17,266 |
Steelmaking Coal | Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 6,251 | 3,375 |
Steelmaking Coal | Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 0 | 0 |
Energy | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 715 | 454 |
Cost of sales | (848) | (780) |
Gross profit | (133) | (326) |
Impairment reversal (Note 7(a)) | 0 | (1,244) |
Other operating income (expense) | (21) | (28) |
Profit (loss) from operations | (154) | (1,598) |
Net finance income (expense) | (26) | (26) |
Non-operating income (expense) | 0 | 0 |
Share of loss of associates and joint ventures | 0 | 0 |
Profit (loss) before taxes | (180) | (1,624) |
Capital expenditures | 83 | 91 |
Goodwill (Note 16) | 0 | 0 |
Total assets | 2,704 | 2,658 |
Energy | Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 715 | 454 |
Energy | Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 0 | 0 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Impairment reversal (Note 7(a)) | 0 | 0 |
Other operating income (expense) | (523) | (357) |
Profit (loss) from operations | (523) | (357) |
Net finance income (expense) | 70 | 9 |
Non-operating income (expense) | 28 | (4) |
Share of loss of associates and joint ventures | 0 | (2) |
Profit (loss) before taxes | (425) | (354) |
Capital expenditures | 13 | 16 |
Goodwill (Note 16) | 0 | 0 |
Total assets | 3,796 | 2,802 |
Corporate | Segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | 0 | 0 |
Corporate | Less intra-segment revenue | ||
Disclosure of operating segments [line items] | ||
Revenue (Note 5(a)) | $ 0 | $ 0 |
Segmented Information - Sched_2
Segmented Information - Schedule of Geographical Areas (Detail) - Non-current assets, excluding deferred income tax assets and financial and other assets - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of geographical areas [line items] | ||
Non-current assets | $ 40,267 | $ 36,315 |
Canada | ||
Disclosure of geographical areas [line items] | ||
Non-current assets | 22,949 | 22,410 |
Chile | ||
Disclosure of geographical areas [line items] | ||
Non-current assets | 13,771 | 10,555 |
United States | ||
Disclosure of geographical areas [line items] | ||
Non-current assets | 1,788 | 1,710 |
Peru | ||
Disclosure of geographical areas [line items] | ||
Non-current assets | 1,597 | 1,483 |
Other | ||
Disclosure of geographical areas [line items] | ||
Non-current assets | $ 162 | $ 157 |
Financial Instruments and Fin_3
Financial Instruments and Financial Risk Management - Summary of U.S. Dollar Financial Instruments Subject to Foreign Exchange Risk (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | $ 221 | $ (135) |
Canada, Dollars | Currency risk | Cash and cash equivalents | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | 664 | 23 |
Canada, Dollars | Currency risk | Trade and settlement receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | 1,042 | 616 |
Canada, Dollars | Currency risk | Trade accounts payable and other liabilities | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | 703 | 608 |
Canada, Dollars | Currency risk | Debt | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | 3,479 | 3,741 |
Reduced by: Debt designated as a hedging instrument in our net investment hedge | Canada, Dollars | Currency risk | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Maximum exposure to credit risk | $ 2,697 | $ 3,575 |
Financial Instruments and Fin_4
Financial Instruments and Financial Risk Management - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021CAD ($) | Dec. 31, 2020CAD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure | $ 221 | $ (135) | ||
Settlement payables | $ 9,000,000 | $ 6,000,000 | ||
Non-current derivative financial liabilities | 51,000,000 | 26,000,000 | ||
Non-current derivative financial assets | 63,000,000 | 77,000,000 | ||
Non-current derivative financial liabilities | 51,000,000 | 26,000,000 | ||
Sale and Purchase Contracts | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current derivative financial assets | 1,100,000,000 | 949,000,000 | ||
Settlement payables | 39,000,000 | 61,000,000 | ||
Zinc | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial liabilities | 60,000,000 | 32,000,000 | ||
Non-current derivative financial liabilities | 60,000,000 | 32,000,000 | ||
Zinc | Trade accounts payable and other liabilities | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial liabilities | 9,000,000 | 6,000,000 | ||
Non-current derivative financial liabilities | 9,000,000 | 6,000,000 | ||
Zinc | Provisions and other liabilities | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial liabilities | 51,000,000 | 26,000,000 | ||
Non-current derivative financial liabilities | 51,000,000 | 26,000,000 | ||
Gold | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current derivative financial assets | $ 43,000,000 | 51,000,000 | ||
Ongoing payment percent | 15.00% | |||
Gold | Prepaid and other current assets | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current derivative financial assets | $ 3,000,000 | 5,000,000 | ||
Gold | Financial and other assets | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current derivative financial assets | 40,000,000 | 46,000,000 | ||
Silver | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial liabilities | $ 25,000,000 | |||
Ongoing payment percent | 5.00% | |||
Non-current derivative financial assets | 33,000,000 | |||
Non-current derivative financial liabilities | $ 25,000,000 | |||
Silver | Prepaid and other current assets | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial assets | 2,000,000 | 2,000,000 | ||
Silver | Financial and other assets | Embedded Derivatives | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Non-current derivative financial liabilities | 23,000,000 | 31,000,000 | ||
Non-current derivative financial liabilities | 23,000,000 | 31,000,000 | ||
Swap contract | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Settlement payables | 9,000,000 | |||
Swap contract | Zinc | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Current derivative financial assets | 9,000,000 | |||
Canada, Dollars | Hedges of net investment in foreign operations | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Gains (losses) on hedges of net investments in foreign operations, before tax | 13,000,000 | 128,000,000 | ||
Canada, Dollars | Borrowings | Hedges of net investment in foreign operations | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure | $ 2,700 | $ 3,600 | ||
Currency risk | Canada, Dollars | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Reasonably possible change in risk variable, amount | 0.10 | |||
Impact on pre-tax earnings | (17,000,000) | (18,000,000) | ||
Reasonably possible change in risk variable, impact on other comprehensive income (loss) | (582,000,000) | (415,000,000) | ||
Interest rate risk | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Impact on pre-tax earnings | $ 1,000,000 | 4,000,000 | ||
Commodity Price Risk | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Reasonably possible change In risk variable, percent | 10.00% | |||
Risk exposure | $ 23,000,000 | 32,000,000 | ||
Commodity Price Risk | Zinc | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Impact on pre-tax earnings | $ 7,000,000 | $ (2,000,000) |
Financial Instruments and Fin_5
Financial Instruments and Financial Risk Management - Summary of Contractual Undiscounted Cash Flow Requirements for Financial Liabilities (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | |||
Lease liabilities | $ 694 | $ 692 | $ 672 |
Interest on lease liabilities (Note 19(c)) | 35 | $ 37 | |
Liquidity risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts payable and other liabilities | 3,045 | ||
Debt (Note 18(f)) | 7,487 | ||
Lease liabilities | 1,128 | ||
Obligation to Neptune Bulk Terminals | 170 | ||
ENAMI preferential dividend liability | 105 | ||
Other liabilities | 232 | ||
Estimated interest payments on debt | 4,408 | ||
Interest on lease liabilities (Note 19(c)) | 82 | ||
Liquidity risk | QB2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated interest payments on debt | 1,753 | ||
Liquidity risk | Joint ventures where entity is venturer [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Advances received | 1,271 | ||
QB2 variable consideration to IMSA | 126 | ||
Less Than 1 Year | Liquidity risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts payable and other liabilities | 3,045 | ||
Debt (Note 18(f)) | 213 | ||
Lease liabilities | 154 | ||
Obligation to Neptune Bulk Terminals | 0 | ||
ENAMI preferential dividend liability | 0 | ||
Other liabilities | 0 | ||
Estimated interest payments on debt | 277 | ||
Interest on lease liabilities (Note 19(c)) | 16 | ||
Less Than 1 Year | Liquidity risk | QB2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated interest payments on debt | 0 | ||
Less Than 1 Year | Liquidity risk | Joint ventures where entity is venturer [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Advances received | 0 | ||
QB2 variable consideration to IMSA | 0 | ||
2–3 Years | Liquidity risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts payable and other liabilities | 0 | ||
Debt (Note 18(f)) | 808 | ||
Lease liabilities | 191 | ||
Obligation to Neptune Bulk Terminals | 26 | ||
ENAMI preferential dividend liability | 43 | ||
Other liabilities | 139 | ||
Estimated interest payments on debt | 623 | ||
Interest on lease liabilities (Note 19(c)) | 24 | ||
2–3 Years | Liquidity risk | QB2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated interest payments on debt | 0 | ||
2–3 Years | Liquidity risk | Joint ventures where entity is venturer [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Advances received | 0 | ||
QB2 variable consideration to IMSA | 63 | ||
4–5 Years | Liquidity risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts payable and other liabilities | 0 | ||
Debt (Note 18(f)) | 872 | ||
Lease liabilities | 172 | ||
Obligation to Neptune Bulk Terminals | 144 | ||
ENAMI preferential dividend liability | 16 | ||
Other liabilities | 56 | ||
Estimated interest payments on debt | 601 | ||
Interest on lease liabilities (Note 19(c)) | 12 | ||
4–5 Years | Liquidity risk | QB2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated interest payments on debt | 0 | ||
4–5 Years | Liquidity risk | Joint ventures where entity is venturer [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Advances received | 0 | ||
QB2 variable consideration to IMSA | 63 | ||
Thereafter | Liquidity risk | |||
Disclosure of detailed information about financial instruments [line items] | |||
Trade accounts payable and other liabilities | 0 | ||
Debt (Note 18(f)) | 5,594 | ||
Lease liabilities | 611 | ||
Obligation to Neptune Bulk Terminals | 0 | ||
ENAMI preferential dividend liability | 46 | ||
Other liabilities | 37 | ||
Estimated interest payments on debt | 2,907 | ||
Interest on lease liabilities (Note 19(c)) | 30 | ||
Thereafter | Liquidity risk | QB2 | |||
Disclosure of detailed information about financial instruments [line items] | |||
Estimated interest payments on debt | 1,753 | ||
Thereafter | Liquidity risk | Joint ventures where entity is venturer [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Advances received | 1,271 | ||
QB2 variable consideration to IMSA | $ 0 |
Financial Instruments and Fin_6
Financial Instruments and Financial Risk Management - Schedule of Effect of Change in Commodity Prices on Profit (Loss) (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($)USD_per_LB | Dec. 31, 2020CAD ($)USD_per_LB | |
Copper | Commodity Price Risk | ||
Disclosure of commodity price risk for financial instruments [line items] | ||
US$/lb. | USD_per_LB | 4.42 | 3.52 |
Change in Profit Attributable to Shareholders | $ | $ 53 | $ 36 |
Zinc | ||
Disclosure of commodity price risk for financial instruments [line items] | ||
US$/lb. | USD_per_LB | 1.62 | 1.24 |
Zinc | Commodity Price Risk | ||
Disclosure of commodity price risk for financial instruments [line items] | ||
Change in Profit Attributable to Shareholders | $ | $ 7 | $ (2) |
Financial Instruments and Fin_7
Financial Instruments and Financial Risk Management - Summary of Provisionally Valued Outstanding Receivable And Payable Positions (Detail) lb in Millions | 12 Months Ended | |
Dec. 31, 2021USD_per_PoundUSD_per_LBlb | Dec. 31, 2020USD_per_PoundUSD_per_LBlb | |
Zinc | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
US$/lb. | USD_per_LB | 1.62 | 1.24 |
Receivable positions | Copper | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
Pounds | lb | 156 | 132 |
US$/lb. | USD_per_Pound | 4.42 | 3.52 |
Receivable positions | Zinc | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
Pounds | lb | 175 | 142 |
US$/lb. | USD_per_Pound | 1.62 | 1.24 |
Receivable positions | Lead | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
Pounds | lb | 53 | 42 |
US$/lb. | USD_per_Pound | 1.06 | 0.90 |
Payable positions | Zinc | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
Pounds | lb | 63 | 112 |
US$/lb. | USD_per_Pound | 1.62 | 1.24 |
Payable positions | Lead | ||
Disclosure of fair value of settlement receivables and payables [line items] | ||
Pounds | lb | 10 | 19 |
US$/lb. | USD_per_Pound | 1.06 | 0.90 |
Financial Instruments and Fin_8
Financial Instruments and Financial Risk Management - Summary of Fair Value of Commodity Swaps Valuation by Discounted Cash Flow Method (Detail) lb in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2021CAD ($)USD_per_Poundlb | Dec. 31, 2020CAD ($)lb | |
Disclosure of fair value of commodity swaps [line items] | ||
Settlement payables (Note 29(b)) | $ | $ 9 | $ 6 |
Swap contract | ||
Disclosure of fair value of commodity swaps [line items] | ||
Settlement payables (Note 29(b)) | $ | $ 9 | |
Swap contract | Zinc | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 140 | |
Financial assets | $ | $ 9 | |
Current derivative financial assets | $ | $ 9 | |
Swap contract | Lead | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 59 | |
Financial assets | $ | $ 0 | |
Current derivative financial assets | $ | $ 0 | |
Payable positions | Zinc | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 63 | 112 |
Payable positions | Lead | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 10 | 19 |
Payable positions | Swap contract | Zinc | ||
Disclosure of fair value of commodity swaps [line items] | ||
Average Price of Commitments | USD_per_Pound | 1.57 | |
Payable positions | Swap contract | Lead | ||
Disclosure of fair value of commodity swaps [line items] | ||
Average Price of Commitments | USD_per_Pound | 1.05 | |
Receivable positions | Zinc | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 175 | 142 |
Receivable positions | Lead | ||
Disclosure of fair value of commodity swaps [line items] | ||
Pounds | lb | 53 | 42 |
Receivable positions | Swap contract | Zinc | ||
Disclosure of fair value of commodity swaps [line items] | ||
Average Price of Commitments | USD_per_Pound | 1.60 | |
Receivable positions | Swap contract | Lead | ||
Disclosure of fair value of commodity swaps [line items] | ||
Average Price of Commitments | USD_per_Pound | 1.04 |
Financial Instruments and Fin_9
Financial Instruments and Financial Risk Management - Summary of Derivatives Not Designated as Hedging Instruments and Embedded Derivatives (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | $ 323 | $ 109 |
Swap contract | Zinc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | 17 | 12 |
Swap contract | Lead | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | 4 | (5) |
Settlement receivables and payables (Note 8) | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | 442 | 47 |
Embedded Derivatives | Zinc | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | (28) | (1) |
Embedded Derivatives | Gold | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | (8) | 28 |
Embedded Derivatives | Silver | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | (7) | 28 |
Variable consideration | ||
Disclosure of detailed information about financial instruments [line items] | ||
Settlement pricing adjustments | $ (97) | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Values of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - CAD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | $ 47,368 | $ 41,278 |
Financial liabilities | 23,595 | 20,570 |
Recurring Fair Value Measurement | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 2,187 | 1,550 |
Financial liabilities | 197 | 93 |
Recurring Fair Value Measurement | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 935 | 465 |
Financial liabilities | 0 | 0 |
Recurring Fair Value Measurement | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 1,204 | 1,045 |
Financial liabilities | 197 | 93 |
Recurring Fair Value Measurement | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 48 | 40 |
Financial liabilities | 0 | 0 |
Recurring Fair Value Measurement | Cash equivalents | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 790 | 313 |
Recurring Fair Value Measurement | Cash equivalents | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 790 | 313 |
Recurring Fair Value Measurement | Cash equivalents | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Cash equivalents | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Marketable equity securities | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 88 | 102 |
Recurring Fair Value Measurement | Marketable equity securities | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 41 | 64 |
Recurring Fair Value Measurement | Marketable equity securities | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Marketable equity securities | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 47 | 38 |
Recurring Fair Value Measurement | Debt securities | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 105 | 90 |
Recurring Fair Value Measurement | Debt securities | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 104 | 88 |
Recurring Fair Value Measurement | Debt securities | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Debt securities | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 1 | 2 |
Recurring Fair Value Measurement | Settlement receivables | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 1,126 | 949 |
Recurring Fair Value Measurement | Settlement receivables | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Settlement receivables | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 1,126 | 949 |
Recurring Fair Value Measurement | Settlement receivables | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 78 | 96 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 78 | 96 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial assets | 0 | 0 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 158 | 32 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 0 | 0 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 158 | 32 |
Recurring Fair Value Measurement | Derivative instruments and embedded derivatives | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 0 | 0 |
Recurring Fair Value Measurement | Settlement payables | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 39 | 61 |
Recurring Fair Value Measurement | Settlement payables | Level 1 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 0 | 0 |
Recurring Fair Value Measurement | Settlement payables | Level 2 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | 39 | 61 |
Recurring Fair Value Measurement | Settlement payables | Level 3 | ||
Disclosure of fair value measurement of liabilities and assets [line items] | ||
Financial liabilities | $ 0 | $ 0 |
Capital Management - Additional
Capital Management - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)creditFacility | Dec. 31, 2020CAD ($) | Dec. 31, 2021CAD ($)creditFacility | |
Disclosure of objectives, policies and processes for managing capital [line items] | |||
Targeted debt-to-EBITDA ratio | 2 | ||
Number of credit facilities | creditFacility | 1 | 1 | |
Borrowings | $ 6,255 | $ 7,374 | |
Debt-to-capitalization ratio, maximum | 0.6 | 0.6 | |
Actual debt-to-EBITDA ratio | 120.00% | 270.00% | |
Actual net debt-to-capitalization ratio | 0.22 | 0.24 | 0.22 |
Revolving Credit Facility Due November 2023 | |||
Disclosure of objectives, policies and processes for managing capital [line items] | |||
Maximum borrowing capacity | $ 4,000,000,000 |
Key Management Compensation - S
Key Management Compensation - Summary of Compensation for Key Management Recognized in Total Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of transactions between related parties [line items] | ||
Salaries, bonuses, director fees and other short-term benefits | $ 21 | $ 19 |
Post-employment benefits | 1 | 8 |
Key management personnel compensation | 82 | 43 |
Share Options | ||
Disclosure of transactions between related parties [line items] | ||
Compensation expense | 12 | 10 |
Deferred, Restricted, Performance and Performance Deferred Share Units | ||
Disclosure of transactions between related parties [line items] | ||
Compensation expense | $ 48 | $ 6 |