Miner Teck Resources on Monday announced the closing of the acquisition by Japan’s Sumitomo of a 30% indirect interest in its Quebrada Blanca Phase 2 (QB2) copper project, in Chile.
Following closing of the transaction, Teck holds a 60% indirect interest in the company that owns QB2 and Empresa Nacional de Minería continues to hold a 10% carried interest.
Sumitomo would contribute about $1.3-billion to the QB2 project during 2019, while Teck’s anticipated share of 2019 QB2 capital spending is about $175-million, which has been expended in the first quarter.
Teck said that should it close a $2.5-billion project financing facility in the second quarter, it would not have to make any further cash contributions to QB2 capital costs until late 2020.
The QB2 project has a 28-year mine life and includes 199-million tonnes of inferred resources within the life-of-mine (LoM) plan.
QB2 will produce 316 400 t/y of copper equivalent in the first five years of its 28-year mine life at an all-in sustaining cost of $1.38/lb and a C1 cash cost of $1.28/lb payable copper. The average LoM production is estimated to be 278 500 t/y of copper equivalent.