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

Talks with hereditary chiefs run into the night

Ministers expected to make statement Saturday morning

Mohawks propose temporary Indigenous police for Wet’suwet’en territory

The RCMP has already committed to ending patrols along a critical roadway

Talks with Wet’suwet’en hereditary chiefs enter second day

Federal and provincial ministers ready to extend discussions

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

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

Coastal GasLink agrees to two-day pause of pipeline construction in Morice River area

Work will stop once Wet’suwet’en hereditary chiefs begin talks with province and feds

Toddler killed in Squamish grocery store parking lot

Child’s mother taken to hospital but her condition is not known

Two law enforcement trucks ‘deliberately’ set on fire in northern B.C., RCMP say

Police say they have video evidence of a person in the area of the truck fires

B.C. mother, daughter return home after coronavirus quarantine in Asia

Jensine Morabito and her daughter were on Holland America’s Westerdam but did not catch the virus

Leap Year means we get an extra day in February, so how are you spending it?

People online have a number of suggestions and plans on how they will be spending Saturday

Greta sticker that drew outrage in Alberta not child pornography: RCMP

X-Site Energy Services has denied having anything to do with the stickers

Bald eagle hit by train in northern B.C. has a chance of survival

The raptor has been taken to OWL in the Lower Mainland for recovery

Cheslatta Carrier Nation and Rio Tinto sign a historic agreement

Co-operation crucial to stem dropping Nechako Reservoir level

Hundreds of B.C. firefighters ‘climb the wall’ for BC Lung Association

The charity fundraiser saw participants climbing up 48 storeys

Most Read