Teck to sell stake in Canadian dam to BC Hydro
VANCOUVER, British Columbia, June 17 (Reuters) - Teck Resources Ltd (TCKb.TO) plans to sell a one-third stake in its Waneta Dam in British Columbia to BC Hydro for C$825 million, the companies said on Wednesday.
Teck expects to record a C$625 million pre-tax gain from the deal, and will use the money to help pay down its debt. It will continue to receive power from the dam for its Trail, British Columbia smelter.
BC Hydro said the transaction will secure about 1,000 gigawatts of electricity for the provincially-owned utility, and was part British Columbia's efforts to make itself electricity self-sufficient by 2016.
Teck has sold excess electricity produced by the dam on the Pend Oreille River near Trail, with much of it exported to the United States. The facility has produced an average of 2,800 gigawatts of electricity annually.
The proposed sale requires approval by the British Columbia Utilities Commission. (Reporting Allan Dowd, Editing Marguerita Choy)
