Teck sells 30 per cent stake in Quebrada Blanca Phase 2 to Sumitomo for US$1.2B

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

The Baynes Sound Connector leaves Denman Island en route to Buckley Bay. Photo by Erin Haluschak
Baynes Sound Connector undergoing upgrades

The MV Quinitsa is providing service between Buckley Bay and Denman Island

B.C. Centre for Disease Control maps showing new COVID-19 cases by local health area for the week of April 4-10. (BCCDC image)
Parksville-Qualicum passes Nanaimo in new COVID-19 cases

Greater Victoria had more new cases than any other Island area: B.C. Centre for Disease Control

Erin Chan accepted her prize of a Staycation at The Kingfisher valued at $500, for winning the  Discover Comox Valley Vacation Guide Photo Contest. Photo by Nicole Fowler
Winner announced in Discover Comox Valley Vacation Guide Photo Contest

Erin Chan has been named the grand prize winner of the Discover… Continue reading

Three Legged Dog Productions performed Jesus Christ Superstar in 2019. Tim Penney photo
Non-profit plans musical renaissance in the Comox Valley

A non-profit society hopes to keep musical theatre alive this summer in… Continue reading

The development permit application is for the back of a property at 2522 Dunsmuir Ave. Photo by Mike Chouinard
Privacy, heritage reasons for secondary house denial in Cumberland

Majority of council wants to see something more in line with Camp Road’s character

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

The following is a list of restaurants offering take-out and patio dining. ADOBE STOCK IMAGE
List of Comox Valley restaurants offering take-out, patio dining options

Restaurants in the Comox Valley continue to adapt to government-imposed restrictions in… Continue reading

The father of Aaliyah Rosa planted a tree and laid a plaque in her memory in 2018. (Langley Advance Times files)
Final witness will extend Langley child murder trial into May or June

Lengthy trial began last autumn with COVID and other factors forcing it to take longer than expected

The Connect Warming Centre has been operating as an emergency overnight shelter in recent weeks. File photo
Grant funds would provide urgent, temporary support to homeless in Comox Valley

At its April 13 meeting, the Comox Valley Regional District board agreed… Continue reading

The corner of 96th Avenue and Glover Road in Fort Langley now has traffic signals, and new “touchless” signal activation buttons. (Matthew Claxton/Langley Advance Times)
Busy Fort Langley intersection gets ‘touchless’ crosswalk signals

The new traffic light started operation in April

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

The 5th Street Bridge Project, which began April 14, is expected to take 6 months to complete. Scott Stanfield photo
5th Street Bridge Project begins in Courtenay

The 5th Street Bridge rehabilitation project began Thursday in Courtenay. The $6.5… Continue reading

Most Read