Teck chooses Sumitomo to develop Chilean copper project in $1.2B deal

Teck Resources (TSX:TECK.A | TECK.B)(NYSE:TCK), Canada’s largest diversified miner, has chosen Japan’s Sumitomo as partner to go ahead with a planned $4.8 billion expansion of the Quebrada Blanca copper mine in northern Chile.

Sumitomo Metal Mining and Sumitomo Corporation will pay $1.2 billion to Teck for a 30% stake in the Quebrada Blanca Phase 2 project — $800 million earn-in contribution and $400 million matching contribution.

The sum is less than the $2 billion Teck hoped to get to help develop the new mine stage, but enough for the board to approve the project, which is expected to begin production in the second half of 2021.

More to come…

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