Teck Cominco
Encyclopedia
Teck Resources Limited known as Teck Cominco until late 2008, is a Canadian mining
company. It was formed from the amalgamation of Teck and Cominco in 2001.
. CM&S, or "Smelters" as it was often called by investors, changed its name to Cominco in 1966. Cominco's core Sullivan Mine
in Kimberley, British Columbia which began production in 1909, would operate for more than 90 years until its ore reserves exhausted in 2001.
Teck began as Teck-Hughes Gold Mines Limited in 1913, to develop a gold discovery by prospectors Sandy McIntyre and James Hughes at Kirkland Lake, Ontario
. The Teck-Hughes Mine would produce for 50 years until 1965. The Beaverdell Mine, purchased by Teck in 1969, went back even further to 1898, and produced silver until 1991.
The association between Teck and Cominco began in 1986, when Teck and two industry partners acquired a shareholding from CP Limited, and culminated with the merging of the two companies in July 2001.
On May 8, 2006, Teck Cominco offered to purchase Inco for $16 billion, but CVRD eventually purchased it for $17 billion.
On July 29, 2008 Teck Cominco announced an agreement with Fording Canadian Coal Trust
, which owned a 60% stake in the Elk Valley Coal Partnership, to purchase 100% of its assets. Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake. The purchase was closed on October 30, 2008, with a final cost of $14-billion USD
. Elk Valley Coal Corporation will be renamed Teck Coal Limited. The purchase resulted in Teck taking on $9.8-billion USD in debt; the company has suspended dividend
s, cut spending, and is selling some assets to save money. On January 9, 2009, the company also announced a plan to cut 13% of their total workforce, amounting to 1,400 jobs, saving the company $85 million. Coal production targets were also lowered by 20% in response to declining worldwide demand for steel
, in the midst of the global financial crisis.
Beginning October 1, 2008, Teck Cominco began rebranding itself as Teck. The legal name of the company was changed to Teck Resources Ltd. on 23 April 2009 after being approved by shareholders the previous day.
In 2009, China Investment Corporation
bought a 17% stake in Teck for C$1.74bn.
are: Norman B. Keevil, Donald R. Lindsay, J. Brian Aune, Jalynn H. Bennett, Hugh J. Bolton, Felix P. Chee, Jack L. Cockwell, Masayuki Hisatsune, Norman B. Keevil III, Takuro Mochihara, Warren S. R. Seyffert, Keith E. Steeves, and Christopher M. T. Thompson. http://www.teck.com/Generic.aspx?PAGE=Teck+Site%2fAbout+Pages%2fBoard+of+Directors&portalName=tc
The company's smelter in Trail, British Columbia
was blamed in 2003 for heavily contaminating the Columbia River
. Legal action taken by American citizens living in settlements downriver progressed to the U.S. Supreme Court and was recently denied certiorari
, solidifying the Appellate Court's holding that Teck Cominco is subject to U.S. jurisdiction even though it is a Canadian company.
A refinery belonging to Teck Cominco in Trail, British Columbia was the site of a lead spill into the Columbia River
on May 28, 2008.
The company's Red Dog mine
operation in north-western Alaska has been ranked by the U.S. Environmental Protection Agency as one of the most polluting facilities in the United States based on output tonnage of toxic waste, largely (over 99%)in the form of blasted and moved, but otherwise unprocessed, waste rock from mining operations. Residents living downstream from the mine recently launched a lawsuit against Teck Cominco, demanding that the Red Dog mine complies with its environmental obligations and that it pay fines for continuing to violate its water permit requirements. On November 30, 2007, the company released the final report of its six-year study, with the oversight of the Alaska Department of Environmental Conservation, of risks of dust escaping from traffic along what is officially known as the DeLong Mountain Regional Transportation System Road. The final report incorporates formal comments and input from a wide range of government agencies and stakeholders, including local village residents. The risk assessment concludes it is safe to consume subsistence foods in all areas without restrictions.
Mining
Mining is the extraction of valuable minerals or other geological materials from the earth, from an ore body, vein or seam. The term also includes the removal of soil. Materials recovered by mining include base metals, precious metals, iron, uranium, coal, diamonds, limestone, oil shale, rock...
company. It was formed from the amalgamation of Teck and Cominco in 2001.
History
Cominco started in 1906 as The Consolidated Mining and Smelting Company of Canada, formed by the amalgamation of several units controlled by the Canadian Pacific RailwayCanadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...
. CM&S, or "Smelters" as it was often called by investors, changed its name to Cominco in 1966. Cominco's core Sullivan Mine
Sullivan mine
Sullivan Mine was an underground conventional–mechanized mine located in Kimberley, British Columbia, Canada; it has a complex, diatreme-hosted orebody, made up primarily of zinc sulfide, lead sulfide, and iron sulfides....
in Kimberley, British Columbia which began production in 1909, would operate for more than 90 years until its ore reserves exhausted in 2001.
Teck began as Teck-Hughes Gold Mines Limited in 1913, to develop a gold discovery by prospectors Sandy McIntyre and James Hughes at Kirkland Lake, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
. The Teck-Hughes Mine would produce for 50 years until 1965. The Beaverdell Mine, purchased by Teck in 1969, went back even further to 1898, and produced silver until 1991.
The association between Teck and Cominco began in 1986, when Teck and two industry partners acquired a shareholding from CP Limited, and culminated with the merging of the two companies in July 2001.
On May 8, 2006, Teck Cominco offered to purchase Inco for $16 billion, but CVRD eventually purchased it for $17 billion.
On July 29, 2008 Teck Cominco announced an agreement with Fording Canadian Coal Trust
Fording Canadian Coal Trust
Fording Canadian Coal Trust was a Canadian-based royalty trust which owned a 60% stake in the Elk Valley Coal Partnership , which in turn produced hard-coking metallurgical coal primarily for steel production. Through the EVCP it also owned a 46% interest in Neptune Bulk Terminals Ltd., which...
, which owned a 60% stake in the Elk Valley Coal Partnership, to purchase 100% of its assets. Teck Cominco had been the minority owner of the Elk Valley Coal Partnership, with a 40% stake. The purchase was closed on October 30, 2008, with a final cost of $14-billion USD
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
. Elk Valley Coal Corporation will be renamed Teck Coal Limited. The purchase resulted in Teck taking on $9.8-billion USD in debt; the company has suspended dividend
Dividend
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. When a corporation earns a profit or surplus, that money can be put to two uses: it can either be re-invested in the business , or it can be distributed to...
s, cut spending, and is selling some assets to save money. On January 9, 2009, the company also announced a plan to cut 13% of their total workforce, amounting to 1,400 jobs, saving the company $85 million. Coal production targets were also lowered by 20% in response to declining worldwide demand for steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
, in the midst of the global financial crisis.
In 2009, China Investment Corporation
China Investment Corporation
China Investment Corporation is a sovereign wealth fund responsible for managing part of the People's Republic of China's foreign exchange reserves. CIC was established in 2007 with approximately US$200 billion of assets under management, making it one of the largest sovereign wealth funds...
bought a 17% stake in Teck for C$1.74bn.
Corporate Governance
The current Board of DirectorsBoard of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
are: Norman B. Keevil, Donald R. Lindsay, J. Brian Aune, Jalynn H. Bennett, Hugh J. Bolton, Felix P. Chee, Jack L. Cockwell, Masayuki Hisatsune, Norman B. Keevil III, Takuro Mochihara, Warren S. R. Seyffert, Keith E. Steeves, and Christopher M. T. Thompson. http://www.teck.com/Generic.aspx?PAGE=Teck+Site%2fAbout+Pages%2fBoard+of+Directors&portalName=tc
Environmental Controversy
In the past, Teck Cominco has been criticized and sued for violating environmental laws and standards—as have most natural resource extraction companies, particularly in the mining sector. Teck Cominco, however, has made "best in class" environmental and social performance a priority of late, and is getting recognized for its efforts; awards for safety, reclamation and sustainable development are all available for public scrutiny on their website, as is their sustainability report.Trail, British Columbia
Trail is a city in the West Kootenay region of the Interior of British Columbia, Canada.-Geography:Trail has an area of . The city is located on both banks of the Columbia River, approximately 10 km north of the United States border. This section of the Columbia River valley is located between the...
was blamed in 2003 for heavily contaminating the Columbia River
Columbia River
The Columbia River is the largest river in the Pacific Northwest region of North America. The river rises in the Rocky Mountains of British Columbia, Canada, flows northwest and then south into the U.S. state of Washington, then turns west to form most of the border between Washington and the state...
. Legal action taken by American citizens living in settlements downriver progressed to the U.S. Supreme Court and was recently denied certiorari
Certiorari
Certiorari is a type of writ seeking judicial review, recognized in U.S., Roman, English, Philippine, and other law. Certiorari is the present passive infinitive of the Latin certiorare...
, solidifying the Appellate Court's holding that Teck Cominco is subject to U.S. jurisdiction even though it is a Canadian company.
A refinery belonging to Teck Cominco in Trail, British Columbia was the site of a lead spill into the Columbia River
Columbia River
The Columbia River is the largest river in the Pacific Northwest region of North America. The river rises in the Rocky Mountains of British Columbia, Canada, flows northwest and then south into the U.S. state of Washington, then turns west to form most of the border between Washington and the state...
on May 28, 2008.
The company's Red Dog mine
Red Dog mine
The Red Dog mine is a zinc and lead mine located in a remote region of the Arctic, within the boundaries of the Red Dog Mine census-designated place in the Northwest Arctic Borough of the U.S. state of Alaska....
operation in north-western Alaska has been ranked by the U.S. Environmental Protection Agency as one of the most polluting facilities in the United States based on output tonnage of toxic waste, largely (over 99%)in the form of blasted and moved, but otherwise unprocessed, waste rock from mining operations. Residents living downstream from the mine recently launched a lawsuit against Teck Cominco, demanding that the Red Dog mine complies with its environmental obligations and that it pay fines for continuing to violate its water permit requirements. On November 30, 2007, the company released the final report of its six-year study, with the oversight of the Alaska Department of Environmental Conservation, of risks of dust escaping from traffic along what is officially known as the DeLong Mountain Regional Transportation System Road. The final report incorporates formal comments and input from a wide range of government agencies and stakeholders, including local village residents. The risk assessment concludes it is safe to consume subsistence foods in all areas without restrictions.