Teck subsidiary buys Balmer mine

A wholly owned subsidiary of Teck (TSE), Elkview Coal Corp., has completed the purchase of the Balmer coal mine in the Elk River Valley of southern British Columbia.

The purchase price includes a cash outlay of $37 million, of which $27 million will be retained by Teck as debt. Elkview will assume an additional $35 million of debt from the original secured lenders who will also receive a participation in the mine’s cash flow after debt service, Teck says.