Teck Resources not to sell off any more assets to pay down debt
Tuesday, 03 Nov 2009
Reuters quoted Mr Don Lindsay CEO of Teck Resources as saying that it doesn't plan to sell off any more assets to pay down debt taken on last year to finance its takeover of Fording and may start considering acquisitions.
Mr Lindsay said that "We do not expect to announce any additional sales." He added that the company would consider taking on a strategic partner for its metallurgical coal business.
Teck expects sales of non core gold assets and a stake in its Waneta hydroelectric dam in British Columbia to have raised a total of USD 1.6 billion once all the deals close next year. It borrowed USD 9.8 billion last year to buy Fording Canadian Coal Trust.
Actions such as the asset sales, a recent bond issue and the sale of a 17% equity stake to state owned China Investment Corp have brought the acquisition debt down to USD 2.7 billion. Teck expects to cut that by another USD 1.1 billion when its remaining announced asset sales close.
Mr Lindsay suggested that the company was at a turning point in its year-long ordeal to recover from the takeover, which was completed just as global resource markets tanked. He added that "We're in a different stage now, we're open for business. There are a lot of proposals that float around that we consider."
However, he said that the company has plenty on its plate with development assets such the Galore Creek copper-gold deposit in British Columbia and the Relincho copper property in Chile.
