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

RDCK rescinds evacuation alert for properties near Talbott Creek fire

Cooler and wetter condition are expected to help crews fight fire in coming days

Citing stability, B.C. Premier calls snap election for Oct. 24

John Horgan meets with Lieutenant Governor to request vote

School District 20 reports COVID case in Rossland school

A case of COVID-19 was reported at Rossland Summit School on Monday

Community comes together to create outdoor classroom at Kootenay school

Brent Kennedy Elementary has a new learning space thanks to an inspired teacher Kalesnikoff Lumber

Rossland Curling Club faces fee increase to continue using arena

The club will have to pay five per cent more this upcoming season to use facility

COVID-19: 4 more deaths, 366 new cases in B.C. since Friday

A total of 8,208 people in B.C. have tested positive for COVID-19 since January

B.C. could be without a new leader for multiple weeks after Election Day: officials

More than 20K mail-in voting packages were requested within a day of B.C. election being called

First full day of B.C.’s election campaign begins amid COVID-19 pandemic

B.C. Liberal Leader Andrew Wilkinson and the Green party’s Sonia Furstenau criticized John Horgan’s decision

RCMP issue two $2,300 COVID fines at same Metro Vancouver vacation rental within 24 hours

Cpl. Mike Kalanj said it was ‘quite frankly appalling’ to see parties breaking COVID-19 rules

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Here’s how voting amid a pandemic will happen in B.C.

Elections BC has worked with the provincial health office to determine safety protocols for voting

B.C. privacy commissioner will hear First Nations complaints about COVID

The hearing will rely on written submissions from the Indigenous governments as well as the Ministry of Health

Majority of Canadians support wearing masks during COVID-19, oppose protests: poll

Nearly 90 per cent felt wearing a mask was a civic duty because it protects others from COVID-19

Most Read