Canada’s largest diversified miner saw its quarterly profit drop 41.5 % from the year earlier, amid lower prices for copper, zinc and oil.
Teck Mining News
EBITDA will be down by about $148 million.
Sumitomo Metal Mining and Sumitomo Corp. will pay $800 million earn-in contribution and $400 million matching contribution for a third of Teck's 90% interest in Quebrada Blanca mine.
Canada’s largest diversified miner is also studying a Phase 3 for Quebrada Blanca, which would double the mine’s capacity to 600,000 tonnes of copper a year from the 300,000 it’s expected to achieve once Phase 2 is completed.
Canada’s largest diversified miner has been looking for a development partner for the $4.8-billion extension of Quebrada Blanca copper mine in northern Chile.
Other companies interested in partnering with Teck include Freeport-McMoRan, China’s Aluminum Corp of China (Chinalco) and Canada’s base metals miner Lundin Mining.
Canada's largest diversified miner said that before beginning the copper mine upgrade, it would have to secure a development partner able to invest $2billion for up to 30% to 40% stake in the project.
No timeline for resumption of operations.
Teck Resources received regulatory approval for its Quebrada Blanca Phase 2 project in the Tarapacá Region in northern Chile.
Copper, iron ore prices drop, mining majors punished as US threatens more tariffs on "predatory" Chinese imports and Beijing calls it "blackmail".
Company now owns 90% of Compañía Minera Teck Quebrada Blanca, which main asset is the namesake copper project in Northern Chile.
Company expects to lose about 200,000 tonnes in steelmaking coal output.
The firm, North America's No.1 producer of coking coal, said the boost in profit was mainly thanks to the reversal of an impairment charge related to an improvement in the outlook for steelmaking commodity.
Project is on track to reach 90% of capacity — or 194,000 barrels per day — by the end of the year.
CEO Patrick Pouyanne said the company’s priority was "value over volume", adding that oil sands were among the high breakeven projects in Total's portfolio.
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After acquiring Goldcorp's 21% in San Nicolás, Canada's largest diversified miner will be the Zacatecas-based copper-zinc project sole owner.
The Lewis project would be located about 25 km northeast of Fort McMurray and could eventually produce up to 160,000 barrels a day.
The Frontier project is located 110 kilometres north of Fort McMurray, in Alberta, around 40 kilometres from the Fort McKay First Nation's reserve.
Zinc was the second-best performing commodity in 2016, with a staggering 65.7% return.
The firm, North America's No.1 producer of coking coal, benefitted from the price rally — steelmaking coal climbed 155.5% to $207 in the quarter.
Cost per barrel, however, will remain at about $84,000 per flowing barrel of bitumen.
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