Miner sells its 21.3% stake in Fort Hills oilsands site to Suncor for $1 billion
Teck Resources Ltd. announced its long-telegraphed exit from Alberta’s oilsands Thursday, in a deal to sell its 21.3 per cent stake in the Fort Hills project to Suncor Energy Inc. for $1 billion.
Fort Hills, the most recently constructed oilsands mine located north of Fort McMurray, Alta., has been plagued by a series of operational and market glitches that restricted it from full production since operations started in 2018. When the deal goes through, Suncor will own a 75.3 per cent stake in the project with France’s TotalEnergies SE holding the remainder.
The sale of the stake helps Teck lean into its strategy to produce “low-carbon metals,” such as copper and zinc, chief executive Jonathan Price said Thursday. Third-quarter earnings released on Oct. 27 show that four metallurgical coal mines in British Columbia’s Elk Valley still account for the bulk of Teck’s revenue — about 48.6 per cent or $2.2 billion.
Fort Hills also was a growing source of revenue for Teck, representing eight per cent of its total in the quarter. The company said it would record an after-tax, non-cash impairment charge of approximately $950 million and expected the transaction to close in early November.