Teck sells Quintette mine in B.C. to Conuma for $120M
The mine ceased operations in 2000 after 18 years of production.
Conuma crews work at Wolverine Mine in Tumbler Ridge, B.C.- Conuma Resources
Key Takeaways:
- The Quintette coal mine in northeastern B.C. has been sold to Conuma by Teck for $120M.
- The mine has been on care and maintenance since 2000.
- The coal produced by the mine is used to create steel.
The Whole Story:
A dormant B.C. mine site is getting a new lease on life.
Teck Resources Limited announced that it has agreed to sell the Quintette steelmaking coal mine in northeastern British Columbia to a subsidiary of Conuma Resources Limited. Conuma will pay Teck $120 million in cash in staged payments over the next 36 months, and an ongoing 25 per cent net profits interest royalty, first payable after Conuma recovers its investment in Quintette.
Closing of the transaction, expected to occur in the first quarter of 2023, is subject to receipt of regulatory approvals and other customary conditions.
The steelmaking coal mine, which produced a semi-hard coking coal product, operated for nearly 18 years up until 2000 and has been on care and maintenance since then. Steelmaking coal is a vital ingredient in the production of steel, which is essential for low-carbon infrastructure such as rapid transit, transmission systems and wind turbines.
Founded in mid-2016, Conuma Resources is a steelmaking coal producer based in Northeast B.C. Conuma’s surface mine operations at Brule, Wolverine and Willow Creek have a rated capacity to produce more than 5 million tonnes of steelmaking coal annually, and provide more than 900 direct and 3,000 indirect jobs in the Peace River Regional District.
