The corporate logo of Teck Resources Limited is shown. THE CANADIAN PRESS/HO

Vancouver miner says sale of oilsands stake more likely as output allowed to rise

Vancouver miner says sale of oilsands stake more likely as output allowed to rise

VANCOUVER — The Alberta’s government’s decision last week to end its oil production curtailment program in December will help advance a plan by Teck Resources Ltd. to sell its stake in the Fort Hills oilsands mine, says CEO Don Lindsay.

But the Vancouver mining company won’t put its 21.3 per cent interest in the project operated by partner Suncor Energy Inc. on the block until the mine demonstrates again the operational strength it showed after startup of an expansion in 2018, he said on a conference call on Tuesday.

“There’s some consolidation going on in the sector, so you can assume conversations are taking place,” Lindsay told analysts.

“But I wouldn’t anticipate that we’d see anything in the near term, not until we’ve been able to ramp up and demonstrate what the asset can do.”

Lindsay has said the Fort Hills stake is not considered core for Teck and it will try to sell it if its value is not reflected in Teck’s share price.

Production at the 194,000-barrel-per-day oilsands mine has been throttled back because of the Alberta quotas introduced in early 2019. Early this year, Suncor shut down one of its two production trains because of low oil prices.

The train was restarted in September to take the mine back to overall production of between 120,000 and 130,000 bpd.

Teck announced Tuesday it earned a profit attributable to shareholders of $61 million or 11 cents per diluted share for the quarter ended Sept. 30.

The result compared with a profit of $369 million or 66 cents per diluted share in the same period a year earlier.

Revenue for the quarter totalled $2.29 billion, down from $3.04 billion in the same quarter last year.

Teck reported its realized price for steelmaking coal fell 35 per cent to US$102 per tonne from US$156 in the third quarter of 2019, while volumes slipped to 5.1 million tonnes from 6.5 million as demand fell due to the COVID-19 pandemic.

It said work on its Neptune Bulk Terminals expansion project in the Port of Vancouver was safely restarted in September after a five-month shutdown.

— By Dan Healing in Calgary.

This report by The Canadian Press was first published Oct. 27, 2020.

Companies in this story: (TSX:TECK.B, TSX:TECK.A)

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A nurse gets a swab ready at a temporary COVID-19 test clinic in Montreal, on Friday, May 15, 2020. Health Canada has reversed course on home test kits for COVID-19, saying it will now review applications for such devices. THE CANADIAN PRESS/Paul Chiasson
Alberta declines Ontario’s request to send health-care workers

Alberta is “not in a position” to send health-care workers out of… Continue reading

The Red Deer Rebels allowed four straight goals from the Medicine Hat Tigers Friday night on the road. (Photo by Rob Wallator/ Red Deer Rebels)
Tigers hand Red Deer Rebels 10th straight loss

Tigers 4 Rebels 2 Through 17 games in the shortened WHL season,… Continue reading

Meghan Huizing has been selected by Red Deer Catholic Regional Schools as a finalist for the Alberta School Boards Association (ASBA) 2021 Edwin Parr Award. (Photo courtesy of Red Deer Regional Catholic Schools)
Red Deer Catholic names finalist for Edwin Parr Award

Meghan Huizing from St. Gregory the Great Catholic School in Blackfalds has… Continue reading

GrammaLink-Africa members are participating in the Stride to Turn the Tide campaign until June 30. (Contributed photo)
Red Deer group walking to raise money for African grandmothers

A group of central Albertans will be walking every day until the… Continue reading

Red Deer Public Schools will not pilot the new draft curriculum at its elementary schools. (File photo contributed by Red Deer Public Schools)
UPDATED: Red Deer Public Schools says no to piloting new curriculum

Alberta Teachers’ Association support school boards

Montreal Canadiens' Tyler Toffoli celebrates his goal past Calgary Flames goaltender Jacob Markstrom during second-period NHL hockey action in Montreal on Friday, April 16, 2021. THE CANADIAN PRESS/Paul Chiasson
Toffoli scores twice, Canadiens put some distance on Flames with 2-1 win

Toffoli scores twice, Canadiens put some distance on Flames with 2-1 win

Canadian prop Jake Ilnicki savouring life in Seattle, looks forward to facing Arrows

Canadian prop Jake Ilnicki savouring life in Seattle, looks forward to facing Arrows

Corey Conners, of Canada, hits out of a bunker on the seventh hole during the final round of the Masters golf tournament in Augusta, Ga., Sunday, April 11, 2021. Conners notched six birdies on his back nine to take the lead after his second round of the RBC Heritage on Friday. THE CANADIAN PRESS/AP-Matt Slocum
Canadian Corey Conners surges into lead at PGA Tour’s RBC Heritage

Canadian Corey Conners surges into lead at PGA Tour’s RBC Heritage

Patrick Marleau poised to break Gordie Howe’s games record

Patrick Marleau poised to break Gordie Howe’s games record

Leylah Annie Fernandez of Canada serves to Marie Bouzkova of the Czech Republic in round 1 of the Rogers Cup women's tennis tournament in Toronto, Monday August 5, 2019. THE CANADIAN PRESS/Mark Blinch
Rebecca Marino propels Canada into 2-0 lead over Serbia at Billie Jean King Cup

Rebecca Marino propels Canada into 2-0 lead over Serbia at Billie Jean King Cup

Dalton Kellett pulls out of the pits during a practice session for the Indianapolis 500 auto race at Indianapolis Motor Speedway, in Indianapolis, Thursday, Aug. 13, 2020. Dalton Kellett is pleased his second career season in IndyCar will be different than his first, which started on an elaborate iRacing rig in his home office in Indianapolis because of COVID-19 restrictions. THE CANADIAN PRESS/AP-Darron Cummings
Canada’s Dalton Kellett set for a more stable season as an IndyCar driver

Canada’s Dalton Kellett set for a more stable season as an IndyCar driver

Canada head coach Bev Priestman reacts during the women's international friendly soccer match between England and Canada at Bet365 stadium in Stoke on Trent, England, Tuesday, April 13, 2021. THE CANADIAN PRESS/AP/Rui Vieira
Canadian women get peek at their possible road at Olympic soccer tournament

Canadian women get peek at their possible road at Olympic soccer tournament

Head coach John Tait talks to his team as Canada takes on Japan in women's sevens rugby action at the 2016 Olympic Games in Rio de Janeiro, Brazil on Saturday, Aug. 6, 2016. THE CANADIAN PRESS/Sean Kilpatrick
Rugby Canada says probe into complaint from members of women’s 7s team is complete

Rugby Canada says probe into complaint from members of women’s 7s team is complete

Most Read