Globe says Teck won't abandon Fort Hills project

2015-02-25 05:49 PT - In the News

The Globe and Mail reports in its Wednesday edition Teck Resources is sticking with the Fort Hills oil sands joint venture. The Globe's Brent Jang writes Fort Hills project is led by Suncor Energy, which holds a 40.8-per-cent stake. France's Total SA has a 39.2-per-cent interest, while Teck owns 20 per cent. "The short-term oil price weakness does not affect our decision on a 50-year asset," Teck chief executive officer Don Lindsay told a mining conference Tuesday. "All three of us are fully committed to finishing the project. By the end of this year, we should be 50- to 55-per-cent complete. At this point, about $11-billion of the $15-billion of contracts have been committed, all within the range that we expected, so off to a really good start in the first 16 months of construction and now the environment is even better." Teck is a low-cost producer of steelmaking coking (or metallurgical) coal that runs five coking coal mines in southeast British Columbia and one in Alberta. It has committed to sending 19 million tonnes annually of coal over the next six years through Westshore's site at Roberts Bank, B.C. Mr. Lindsay added, "A low oil price is very, very good for Teck for the next three years."

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