The expansion of the mine, which will require an estimated investment of $4.7 billion, is set to start producing in 2021 and could double Teck’s copper business.
Sumitomo Metal Mining and Sumitomo Corp. will pay $800 million earn-in contribution and $400 million matching contribution for a third of Teck's 90% interest in Quebrada Blanca mine.
Relief that an escalation in the trade war between the US and China has been avoided – at least for now – sparked a huge rally in mining stocks on Monday.
The premiums, paid on top of benchmark three-month London Metal Exchange (LME) prices, fell 10.7% from Friday's levels to $62.50 a tonne, the lowest since June 2017.
The macro picture may have brightened just a little after the weekend meeting of the U.S. and Chinese presidents, but signs the global economy is losing momentum, do not bode well for metals demand.
