BRITISH COLUMBIA – Vancouver-based Teck Resources has agreed to sell its two-thirds interest in the Waneta hydroelectric dam and related transmission assets to Fortis Inc. for $1.2 billion cash.
Teck’s Trail complex is one of the world’s largest fully integrated zinc and lead smelting and refining operations.
Power from the Waneta Dam is used at Teck’s Trail, B.C., metallurgical complex. To ensure the electricity continues to flow, Fortis has granted Teck Metals a 20-year lease for two-thirds of the annual electricity output. Payments will begin at $75 million per year and rise 2% each year, equivalent to an initial power price of $40 per MWh. Teck Metals will have an option to extend the lease for a further 10 years.
Om 2016, Teck’s Trail operations produced and sold 312,000 tonnes of refined zinc and generated $2.05 billion in revenues. Details available at www.Teck.com.