Canadian diversified miner Teck Resources (NYSE:TCK, TSX:TCK.B), along with oilsands giant Suncor (NYSE:SU, TSX:SU) and French company Total (EPA:FP), said Thursday it has decided to proceed with construction of the Fort Hills oil sands project in northern Alberta.
The project is 40.8 percent owned by Suncor, which will operate the facility. Total E&P Canada owns 39.2 percent and Teck owns 20 percent.
As quoted in the press release:
“With an expected mine life in excess of 50 years, Fort Hills is one of the best undeveloped assets in the Athabasca region and is a natural fit with our business strategy of acquiring and developing long-life assets in stable jurisdictions,” said Don Lindsay, President and CEO at Teck. “With Fort Hills and our other oil sands assets, we are building a new division within Teck that will create value, significant cash flow and diversification for our business for decades to come.”
The project is located in Northern Alberta, approximately 90 kilometres north of Fort McMurray. Fort Hills has an estimated contingent resource of 3.3 billion barrels of bitumen. The project is scheduled to produce first oil as early as the fourth quarter of 2017 and achieve 90% of its planned production capacity of 180,000 barrels per day (bpd) of bitumen within 12 months. Teck’s share of production is expected to be 36,000 bpd (13 million barrels per year) of bitumen.