On Monday this week, Teck Resources Ltd (Teck) announced the closing of the acquisition by Sumitomo Metal Mining Co. (SMM), Ltd. and Sumitomo Corporation (SC) of a 30% indirect interest in Compañia Minera Teck Quebrada Blanca S.A. (QBSA), which owns the Quebrada Blanca Phase 2 (QB2) project.
Following closing of the transaction, Teck holds a 60% indirect interest in QBSA and Empresa Nacional de Minería continues to hold a 10% carried interest. SMM and SC are expected to contribute approximately US$1.3 billion to the QB2 project during 2019.
Teck’s anticipated share of 2019 QB2 capital spending is approximately US$175 million, which has been expended in the first quarter. Assuming closing during 2019 under the US$2.5 billion project financing facility expected to be signed in the second quarter, further cash contributions from Teck to QB2 capital costs are not expected to be required until late 2020.