Sale of Quintette coal mine near Tumbler Ridge official -- expected to have significant impact on regional economy
TUMBLER RIDGE -- The sale of the Quintette coal mine near Tumbler Ridge is official and is expected to have a big impact to the South Peace Region economy.
The $120 million dollar sale between Conuma Resources and Teck Resources has been approved by regulators.
Conuma will pay Teck $120 million in cash in staged payments over the next 36 months, and an ongoing 25% net profits interest royalty, first payable after Conuma recovers its investment in Quintette.
Conuma expects the mine to be re-opened in the 4th quarter of 2023. The economic impact of re-opening the mine is expected to be significant.
“We plan to spend close to $200 million dollars over the next 24 months on new equipment and re-investing into the site,” said Brian Sullivan, the Chief Executive Officer of Conuma.
Quintette was in operation for 18 years until Teck closed the mine in 2000. Sullivan said,” Back in 2000, China wasn’t even a market that companies in BC could ship coal for steelmaking. Last year, we shipped close to 35 per cent of our output to China.”
In granting approval of the sale, the provincial government consulted with the Saulteau First Nations, West Moberly First Nations, McLeod Lake Indian Band, Doig River First Nation, Halfway River First Nation and Prophet River First Nations. The province says the First Nations will continue to be engaged throughout the life of the mine.
Conuma produces high quality steelmaking coal for steelmakers across the world. The company iS based in north east BC and currently has three mines in operation near Tumbler Ridge and Chetwynd.