Teck Resources is selling its stake to China Investment Corporation

In order to reduce its debts, Vancouver based Canadian mining company, Teck Resrouces Ltd., is selling its 17% stake to China Investment Corp. (CIC) for $1.5 billion. Out of this money about $10 million will be used to clear bank debt. Currently, the sale is waiting for regulatory approval and it will be closed on July 14, 2009.

CIC is buying Teck Resources 101.3 million class B voting shares. CIC would also invest in the company’s future projects. In June 2009, Teck Resources sold its

one-third interest in Waneta Dam to BC Hydro for $710 million. The company also collected funds worth $700 million by selling its top assets.

In July 2008, Teck Resources acquired Fording Canadian Coal Trust for $9.8 billion but after the deal was done product prices went down and hurt the company’s profitability. In early 2009, Teck Resources was exempted a portion of its debt. The company is also looking for a partner to invest in its coal business.

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AP