Teck Resources聽(TSX: TECK.A | TECK.B) (NYSE: TECK), Canada鈥檚 largest diversified miner,聽has to sell its closed Quintette steelmaking coal mine to Conuma Resources for $120 million聽cash.
The asset, in northeast British Columbia, has been shuttered since 2000, after being in operations for 18 years.
Teck said Conuma Resources, a Canadian a steelmaking coal producer, will also pay an ongoing 25% net profits interest royalty once it recovers its investment in Quintette.聽
The Vancouver-based miner is using strong cash flows from its coal business to expand its copper development, including the Quebrada Blanca Phase 2 (Q2) expansion project in Chile.
Once in operation, Q2 would聽double Teck鈥檚 copper production, extending Quebrada Blanca鈥檚 life by 28 years and boosting production to 300,000聽tonnes聽of copper a year from 287,000聽tonnes聽in 2017.聽
Major steelmakers are starting to move away from coking coal used in blast furnaces and switching to greener alternatives, such as hydrogen.
The International Energy Agency聽聽that shows 鈥渉ydrogen-based steelmaking has picked up significant momentum鈥�. According to the agency, the number of steelmakers鈥� announcements to use such technology tripled over the prior 12 months.
According to the World Steel Association, the industry is responsible for between聽聽created from the burning of fossil fuels.聽