Teck purchases Powderhorn play

A wholly owned subsidiary of Teck (TSE) has acquired the Powderhorn titanium project near Gunnison, Colo.

With its estimated reserve of 450 million tonnes grading 11.5% titanium dioxide, the Powderhorn is the largest known titanium reserve in the U.S. Previously, the company had the right to earn a 70% interest in the project from a subsidiary of Reunion Resources by arranging project financing. The major bought a 100% interest for US$2 million, subject to a production royalty interest of 0.5% payable to Reunion.

Titanium is used in the production of pigments and in the manufacture of paper, plastics and rubber products. The U.S. relies on imports for an estimated 40% of its feedstock requirements.

Teck is proceeding with a larger-scale pilot test plant, with the objective of producing titanium dioxide for test marketing and providing data for a final feasibility study.