Teck Cominco intends to curtail capital and exploration spending, and will consider selling off assets, as it prepares itself for the slumping metals markets and debt load.
The company arranged a $9,8-billion debt to acquire Fording Canadian Coal Trust, amounting to a $4-billion, three-year amortization term that requires 11 quarterly installments beginning in April 2009, and a $5,8-billion 364-day bridge loan.The idea is to reduce debt as quickly as possible, says key company spokesperson, although he didn't disclose what assets would be up for sale.
Teck's 20 per cent interest in the Fort Hills oil sands project in Northern Alberta remains up in the air. An engineering study indicated that capital costs for the project had escalated by some 50 per cent from a June 2007 estimate of $18,8-billion.
.jpeg;w=120;h=80;mode=crop)
