Teck closes US$1.2 billion Quebrada Blanca transaction
On December 4, 2018, Teck Resources Limited ("Teck") announced that Sumitomo Metal Mining Co., Ltd. ("SMM") and Sumitomo Corporation ("SC") agreed to acquire a 30% indirect interest (through a jointly held entity) in Compañia Minera Teck Quebrada Blanca S.A. ("QBSA"), which owns the Quebrada Blanca Phase 2 ("QB2") project.
Under the transaction, an initial subscription payment of US$1.2 billion will be made to acquire a 33.33% interest in a special purpose entity ("JVco") that will hold a 90% common share interest in QBSA. Of that amount, US$800 million will be payable on closing and US$400 million payable as and when funds are required for QB2 project development.
Closing of the acquisition ;was announced on April 1, 2019.
The QB2 project is a long-life, low cost copper asset, that is set to produce clean copper and molybdenum concentrates.
Further information can be found on Globe Newswire's website.
Sumitomo Metal Mining aspires to be a global leader in non-ferrous metals focused on copper, gold and nickel, with its integrated operations of three core business sectors, mineral resources, smelting and refining, and battery materials.
Sumitomo Corporation is a global trading and business investment company with 109 locations in 65 countries. The entire SC Group consists of more than 900 companies.
Teck Resources, headquartered in Vancouver, is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy.