Teck sells 30 per cent stake in Quebrada Blanca Phase 2 to Sumitomo for US$1.2B

Quebrada Blanca Phase 2 is a massive undeveloped copper project in Chile

Teck Resources Ltd. has sold a 30 per cent stake in its Quebrada Blanca Phase 2 project to Sumitomo Metal Mining Co. Ltd. and Sumitomo Corp. for US$1.2 billion.

The Vancouver-based miner also says that its board has approved the project for full construction with first production expected in the second half of 2021.

Quebrada Blanca Phase 2 is a massive undeveloped copper project in Chile.

RELATED: Dam sale boosts Q3 profit for Teck Resources, but lower commodity prices sting

The Sumitomo deal will reduce Teck’s estimated share of remaining contributions to build the mine to US$693 million.

Teck will retain a 60 per cent stake in the project, while ENAMI, a Chilean state agency, will hold a 10 per cent non-funding interest.

The project is expected to have an initial mine life of 28 years with 316,000 tonnes of copper equivalent production per year for the first five full years.

RELATED: Coal dust blowing from rail cars in Shuswap prompts project

“QB2 is one of the world’s premier undeveloped copper assets and this transaction further confirms the value of the project,” Teck’s chief executive Don Lindsay said.

“This partnership significantly de-risks Teck’s investment in the project, enhances our project economics and preserves our ability to continue to return capital to shareholders and reduce bonds currently outstanding.”

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

All Safe Surrey Coalition council members must ‘step up’ over ‘bad taste’ tweets, rivals say

Slate’s posts on social media in ‘bad taste,’ councillor says

First degree murder charge laid in South Surrey shooting death

Wayne Duncan, 46, was killed on Sept. 6, 2019

Surrey sports groups grapple with refunds, registration, restrictions and more

‘Our biggest problem is going to be retraining the public because they can’t be there’

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

Low-cost bicycle repair shop opens in Cloverdale

Cloverdale Community Cycles starts up in church parking lot

VIDEO: A Vancouver Island black bear takes weekend nap in eagle tree

Videos captured by Terry Eissfeldt shows the bear arriving Saturday night and sleeping in on Sunday

Two more COVID-19 cases reported by Langley long term care facility

One resident, one staffer have tested positive for the coronavirus

George Floyd asphyxiated by sustained pressure: family autopsy

Death sparked a wave of protests across the U.S. and abroad

Suspect sought in alleged assault, hate crime on Metro Vancouver bus: transit police

The woman then allegedly punched the teenager in the head multiple times

COVID-19: B.C. commercial landlords can’t evict if they decline rent assistance

Emergency order ‘incentive’ for federal program, Carole James says

B.C. Hockey League prepping for 2020-21

League reviewing different scenarios and start times in compliance with provincial regulations

Abbotsford International Airshow opening 50-year-old time capsule

Bronze time capsule was put together to commemorate AIA as Canada’s National Airshow

Trans Mountain starts B.C. leg of pipeline twinning project

Mostly finished in Alberta, Burnaby terminal expanding

Most Read

l -->