Teck Resources (TECK.B) is selling its shuttered Quintette coal mine in northeast British Columbia to privately held Conuma Resources for $120 million in cash.
In addition to the cash payment, Teck Resources says Conuma Resources will pay it 25% of its net profits going forward once Conuma recovers its initial investment in the Quintette mine.
The Quintette mine is located in Tumbler Ridge, British Columbia and was in operation for 18 years until Teck Resources closed it in 2000. The mine site has been idle ever since.
Conuma Resources is a steelmaking coal producer based in northeast British Columbia. The company operates three other mines in the province near Chetwynd and Tumbler Ridge.
The sale of the Quintette mine is subject to regulatory approval is and is expected to close in the first quarter of 2023.
Teck Resources’ stock is up 34% in 2022 at $49.86 per share.
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