Teck Resources (NYSE:TECK) has secured C$400 million ($406.1 million) in government investment to expand its critical minerals production at its Trail Operations facility in British Columbia, Canada.
Teck has entered into a Strategic Investment Agreement with Canada Growth Fund (CGF) and Natural Resources Canada’s Canada Critical Minerals Accelerator for an equity-like investment.
The funding forms part of a potential C$850 million investment by the company to sustain and expand critical minerals processing capacity at Trail.
The agreement establishes an offtake structure with the Government of Canada, including offtake rights for a portion of future germanium, antimony, and gallium produced by Trail. The arrangement represents the inaugural transaction under Canada’s newly launched Canada Critical Minerals Accelerator initiative.
Trail Operations is a polymetallic smelting and refining complex in British Columbia that produces 19 metal products, including several critical minerals.
The Province of British Columbia has designated the Trail Strategic Metals Initiative as one of 18 priority resource projects. The initiative could double the facility’s production capacity for germanium and antimony while adding new gallium production.
“Teck’s Trail Operations is a cornerstone of North America’s critical minerals ecosystem. Collaboration with CGF and the Canada Critical Minerals Accelerator will help advance the opportunity we have to quickly and significantly increase production capacity for key strategic metals and help strengthen secure, responsible supply chains,” CEO Jonathan Price says.
Realisation of the commercial arrangements remains subject to certain conditions, including negotiation and execution of definitive documentation and satisfaction of applicable approvals. The Canada Critical Minerals Accelerator represents a $2 billion initiative managed by Export Development Canada in collaboration with Natural Resources Canada.
Write to France Pinzon at Mining.com.au
Images: Teck Resources
