Teck signs $400M agreement to expand critical minerals output

Teck Resources Limited (NYSE: TECK) has signed a Strategic Investment Agreement with Canada Growth Fund Inc. (CGF) and Natural Resources Canada's Canada Critical Minerals Accelerator to expand production of germanium, gallium, and antimony at its Trail Operations smelting complex in British Columbia.

The agreement establishes a commercial framework for an equity-like investment by CGF of up to $400 million directly into the Trail facility. Total potential investment by Teck is up to $850 million to sustain and enhance critical minerals processing capacity at Trail from a portfolio of feed sources.

The arrangement also includes an offtake structure with the Government of Canada, providing offtake rights for a portion of future germanium, antimony, and gallium production from Trail. The deal marks the first transaction under Canada's newly launched Canada Critical Minerals Accelerator, an initiative managed by Export Development Canada on behalf of Natural Resources Canada.

The agreement reflects both parties' intent to work toward an investment that could double Trail's existing production capacity for germanium and antimony and potentially add new gallium production capacity.

The Province of British Columbia has named the Trail Strategic Metals Initiative as one of 18 priority resource projects and is working with Teck on opportunities to further support the initiative.

"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," said Jonathan Price, President and CEO of Teck.

Realization of the commercial arrangements remains subject to conditions including the negotiation and execution of definitive documentation and applicable approvals.

PSP Investments, which manages CGF through a wholly owned subsidiary, disclosed that it held an ownership stake in Teck of less than 0.2% at the time of approval, held through externally and internally managed portfolios, in accordance with its conflicts of interest policy.

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