Canadian mining company Teck Resources has raised its stake in the Quebrada Blanca copper mine to 90% by acquiring Chilean company Inversiones Mineras, which held a 13.5% stake in operating company Compañía Minera Teck Quebrada Blanca (QBSA).
Teck acquired Inversiones Mineras for a total consideration value of $162.5m. The remaining 10% stake is owned by Chilean state agency ENAMI.
A copper development project in Northern Chile, the Quebrada Blanca Phase 2 (QB2) is a principal asset of QBSA.
Commenting on the deal, Teck Resources president and CEO Don Lindsay said: “This transaction simplifies the ownership and capital structure for QB2, giving Teck additional flexibility with respect to financing options for the project.
“QB2 is a high-quality, long-life asset in a low risk jurisdiction that will operate through multiple price cycles at a low-cost, substantially increase Teck’s copper production, and generate significant value.”
Under the agreement, the Canadian company paid $52.5m in cash on closing and will pay further $60m once the QB2 project receives social and environmental approvals. The remaining $50m will be paid within 30 days of Quebrada Blanca Phase 2 first production.
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The Quebrada Blanca mine is nearing the end of its life and Teck Resources is waiting for regulatory approvals before deciding whether or not to proceed with Phase 2.
However, regulatory decision is not expected to come before the second half of this year.