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

Sweet way to raise money for furry friends in need

Fundraiser underway until March 1 at West Kootenay Animal Clinic

Trucking company fined $175K for Lemon Creek fuel spill

Decision handed down last Friday in Nelson court

Interior Health leading the way with innovative therapy for stroke patients

Percentage of ischemic stroke patients who received treatment has risen dramatically

Trail open house part of Basin-wide public engagement

Trail event goes Thursday, March 12 from 2-6 p.m., and guided discussion from 6-8 p.m.

Fashion Fridays: Tammy’s big makeover

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Ryan nets hat trick in return as Senators beat Canucks 5-2

Ottawa winger received assistance for admitted alcohol problem

Wet’suwet’en hereditary chiefs meet with provincial, federal ministers

Neither party speaking on the groundwork laid for tomorrow’s talks

Speaker ‘will not tolerate illegal activity’ on B.C. legislature grounds, says chief of staff

Chief of staff to the B.C. speaker Alan Mullen says situation with demonstrators appears ‘fluid’

MPs to examine privacy implications of facial-recognition technology used by RCMP

The MPs will look at how the technology affects the privacy, security and safety of children

Dates back to 2009: Calgary police lay charges in fraud involving semi-trucks

Three people from Calgary are facing charges that include fraud over $5,000

Wet’suwet’en hereditary chiefs optimistic ahead of talks with feds, province

Discussions with provincial and federal governments expected to start later today

‘The project is proceeding’: Horgan resolute in support of northern B.C. pipeline

B.C. premier speaks as talks scheduled with Wet’suwet’en hereditary chiefs

Most Read