Teck’s $1.2bn sale of Waneta dam interest closes

27th July 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX- and NYSE-listed diversified miner Teck Resources on Friday announced the closing of the sale of its two-thirds interest in the Waneta dam, in British Columbia, to BC Hydro for $1.2-billion.

The transaction has received the necessary regulatory approvals and consents, including approval by the British Columbia Utilities Commission.

Teck will record an after-tax gain of about $820-million as a result of the sale, with no cash tax payable on the proceeds.

As part of the sale, Teck Metals holds a 20-year lease to use the two-thirds interest in Waneta to produce power for its industrial operations in Trail.

Yearly payments will begin at about $75-million and escalate at 2% a year, equivalent to an initial power price of $40/MWh, based on 1 880 GWh/y of energy.

Teck Metals has an option to extend the lease for a further ten years at comparable rates.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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