Teck Corp’s Highmont plant to join Highland Valley

Much to its relief, Teck Corp. has concluded an agreement to incorporate its dormant Highmont plant into Cominco and Lornex Mining’s Highland Valley Copper project in southwestern B.C. Teck President Norman B Keevil Jr. had threatened to take legal action against Lornex, claiming the two companies had a verbal agreement to include the Highmont mill in the project.

Highland Valley Copper was formed in July, 1986, to combine the copper mining and milling assets of Cominco and Lornex in the Highland Valley 32 miles south of Kamloops. Cominco has 55% of the partnership and Lornex 45%, although the venture is managed jointly by the two companies.

The agreement involves a number of steps but the net result will see Cominco retain 50% of the cash flow, Lornex 45% (unchanged from before) and Highmont 5%. In order for Lornex’s position to remain unchanged at 45%, Cominco will receive $16.7 million in cash from Highland Valley Copper. This amount will be provided by Lornex. No management changes are planned.

All major mining and milling assets in the valley will now be held by one partnership entity which should allow for optimization in production planning and control of production costs, they conclude.

Expansion of the Valley copper mine is currently under way. The Lornex and Bethlehem milling operations should reach 125,000 tons per day or 400 million lb copper by year-end. The operation will be the largest copper mine in Canada and Teck’s combined equity in Highland Valley Copper will be 20%. Of that amount, 2.5% will be held directly and the balance indirectly through its shareholdings in Cominco and Lornex.

Highmont Mining is a partnership owned 50% by Teck, 30% by a subsidiary of Kuwait Investment Office of London and 20% by Metall Mining and associates.