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

White Rock couple to donate blood 325th time, collectively

Anne Friendly will make her 175th donation, while her husband Kevin Klop will donate his 150th time

South Surrey mothers to launch CBD-infused water product

Three friends say benefits may include anxiety relief, pain management

4-year-old child injured in Surrey after falling out window

Child fell out of third-storey window, expected to fully recover

City of White Rock hosts official pier reopening

Event included ribbon-cutting, speeches, live music

Surrey school district to allow students to miss class for global climate strike

Students must be excused from school by parents; will be able to make up missed work without penalty

VIDEO: A moment to remember during the World Lacrosse Men’s Indoor Championship in B.C.

Diego Hernandez Valenzuela’s team lost, but he felt like a winner Saturday

Over 200 Hotel Georgia hospitality workers join ‘open-ended strike’

Unionized workers at Hyatt Regency, Westin Bayshore and Pinnacle Harbourfront have also walked out

B.C. Lions hype-man marks 15 years of cheers

Crazy P cheers, chants, bangs his drum and spreads a message of love

Hiker rescued after spending night on Crown Mountain

North Shore Rescue spotted the woman by helicopter over Hanes Valley

PHOTOS: Steller sea lion with plastic around neck rescued on Vancouver Island

Rescue staff determined the plastic band cut the protected animal’s neck approximately two inches

B.C. VIEWS: School officials join fact-free ‘climate strike’

Students, public get distorted picture of greenhouse gases

Vancouver Giants complete weekend sweep of Cougars

Back-to-back road trip victories for Langley-based team

Handgun crackdown, health spending and transit plans latest campaign promises

Friday was the end of a busy week on the campaign trail

B.C. woman photographs massive ant swarm on Abbotsford driveway

She asked what the ants were doing? The answer: war

Most Read