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.

Just Posted

LETTER: In Maple Ridge, tents are not enough

At the end of the day, there was shelter and food.

Maple Ridge pair denied stay of extradition

Two facing charges in India from 2000

Mission firefighters battle barge fire near Silverdale

Barge contains several living quarters, no news on injuries

Maple Ridge returns to B.C. Supreme Court to address tent city safety

Order to better identify those living in the camp who do not have housing or shelter.

Girl, 6, lured from elementary school, sexually assaulted: Vancouver police

Police are seeking dashcam footage from nearby Sexsmith Elementary School in South Vancouver

Ridge hospital foundation helps with mental health

Donates a possible $500k for youth wellness

Coquihalla closed northbound

Highway 5 is set to reopen after 1 p.m.

Stop ‘renovictions,’ B.C. housing task force says

MLAs call for end to strata bans on renting vacant suites

Man caught on camera allegedly trying to defraud ICBC

Auto-insurer warns B.C. drivers to record info after crashes

B.C. Liberals call for outside audit of Speaker’s office, NDP refuses

Auditor General implicated in Darryl Plecas accusations of impropriety

Three victims of ex-ski coach Bertrand Charest suing Alpine Canada

The victims are also seeking $150,000 each in punitive damages

Trudeau names four new senators, filling every seat in the Senate

Trudeau has appointed 49 senators since becoming prime minister and will have the chance to appoint more in 2019

B.C. member of parliament takes feds to task on opioid crisis

‘Too many families are tragically losing parents, siblings and children to the opioid crisis.’

Heart attack raises questions about boarding BC Ferries in health emergencies

Quadra Island man recovering after being airlifted to hospital in Victoria

Most Read