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BRIEF-Teck to mull partners for $4.8 bln QB2 project in Chile

Published 2018-07-26, 12:10 p/m
BRIEF-Teck to mull partners for $4.8 bln QB2 project in Chile
TECK
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July 26 (Reuters) - Teck Resources Ltd TECKb.TO :

* EXPECTS FINAL PERMIT APPROVAL IN AUGUST FOR QB2 PROJECT IN CHILE - CHIEF EXECUTIVE OFFICER DON LINDSAY

* TECK BELIEVES PARTNERSHIP TRANSACTION FOR QB2 WILL REDUCE TECK'S FINANCIAL REQUIREMENTS FOR THE PROJECT BY OVER $2 BILLION - CEO

* TECK WILL NOT SIMPLY PICK HIGHEST BIDDER FOR QB2 STAKE FROM THREE TYPES OF POTENTIAL PARTNERS: LARGE MINERS, METAL MARKETING COMPANIES, FINANCIAL PLAYERS - CEO

* TECK, WITH C$2.9 BILLION IN CASH AND C$6.8 BILLION LIQUIDITY, WILL CONSIDER DEBT REDUCTION, GROWTH PROJECTS, AND/OR SHAREHOLDER RETURNS VIA DIVIDEND OR BUYBACK SET AT NOVEMBER BOARD MEETING - CEO

* TECK SAYS IF VALUE OF FORT HILL OIL SANDS BUSINESS INADEQUATELY REFLECTED IN SHARE PRICE IN 2020-2021, WOULD CONSIDER SUCH OPTIONS AS SPINOUT, SALE, PARTNERING - CEO

* TECK WORKING WITH POTENTIAL QB2 CONTRACTORS TO IMPROVE LABOR PRODUCTIVITY - "THE BEST CHANCE" TO MAINTAIN OR REDUCE $4.8 BILLION PROJECT COST - VP ALEX CHRISTOPHER

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