VANCOUVER – TECK COMINCO is upping both its coal and oil sands interests. The company announced Sept. 24, that it had acquired a further 16.65 million units of FORDING CANADIAN COAL TRUST for a cash consideration of Cdn$599.4 million or Cdn$36/unit. The Vancouver miner now holds approximately 11.25% of Fording, which operates Elk Valley Coal.
Both Teck Cominco and partner PETRO-CANADA of Calgary are each going to earn a further 5% interest in the Fort Hills oil sands project in northern Alberta. The companies have agreed to fund a further $375 million of partnership expenditures beyond current earn-in obligations. The project will then be owned 60% by Petro-Canada, 20% by Teck Cominco and 20% by UTS ENERGY of Calgary.
Details of the transactions are available at www.TeckCominco.com or www.Petro-Canada.ca.