Sumitomo Metal Mining Co and Sumitomo Corp have agreed to buy a 30% indirect stake in the company that owns the Quebrada Blanca Phase 2 (QB2) copper project in northern Chile, according to its majority owner Teck Resources Ltd.
The Teck board has also approved the QB2 project for full construction, with first production targeted for the second half of 2021. Teck will receive $1.2 billion for the stake in Compa??ia Minera Teck Quebrada Blanca SA (QBSA), comprising an $800 million earn-in contribution and a $400 million matching contribution. The parties will also pay $50 million to Teck upon QB2 achieving optimized target mill throughput of 154,000 tonnes a day by December 31, 2025, subject to adjustment. Fastmarkets reported in July that Canada-based Teck had been looking to secure an additional partner for the project, which is expected to be a tier one...