VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 19, 2007) - Teck Cominco Limited (TSX - TCK.A; TCK.B; NYSE - TCK) announced today that it has entered into an agreement with UTS Energy Corporation and Petro-Canada to subscribe for an additional 5% interest in the Fort Hills Energy Limited Partnership (the "Partnership"), which is developing the Fort Hills oil sands project in Alberta, Canada.
Under the agreement, each of Teck Cominco and Petro-Canada will earn an additional 5% interest in the Partnership by funding an additional $375 million of Partnership expenditures, beyond current earn-in obligations. As a result of the agreement, the interests of Teck Cominco, UTS and Petro-Canada in the Partnership will be adjusted to 20%, 20% and 60%, respectively. Teck Cominco will satisfy the subscription price for the additional interest by contributing 27.5% of Fort Hills project expenditures after project spending reaches $2.5 billion and before project spending reaches $7.5 billion. Closing of the transaction is subject to definitive documentation.
Teck Cominco President and Chief Executive Officer Don Lindsay said: "We are pleased to be able to increase our interest in the Fort Hills partnership. This asset will contribute significantly to the portfolio of Teck Cominco for decades to come."
This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "is estimated", "forecasts",, "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Teck Cominco to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements include estimates, forecasts, and statements as to management's expectations concerning the future development and costs of the Fort Hills oil sands project. These forward-looking statements involve numerous assumptions, risks and uncertainties and actual results may vary materially.
These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, interest rates, costs of construction and costs of production, production and productivity levels, market competition, and receipt of necessary approvals The foregoing list of assumptions is not exhaustive. Events or circumstances could cause actual results to differ materially.
Factors that may cause actual results to vary include, but are not limited to: business and economic conditions in the oils sands industry generally, the supply and demand for labour and other project inputs, prices for commodities to be produced, changes in commodity prices, changes in interest and currency exchange rates, inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources), unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, changes in general economic conditions or conditions in the financial markets and other risk factors as detailed from time to time in Teck Cominco's reports filed with the U.S. Securities and Exchange Commission ("SEC") and Canadian securities administrators.
Certain of these risks are described in more detail in the annual information form of Teck Cominco and in its public filings with the SEC and Canadian securities administrators. Teck Cominco does not assume the obligation to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.
About Teck Cominco
Teck Cominco is a diversified mining company, headquartered in Vancouver, Canada. Shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B. and the New York Stock Exchange under the symbol TCK. The company is a world leader in the production of zinc and metallurgical coal and is also a significant producer of copper, gold and specialty metals. Further information can be found at www.teckcominco.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Teck Cominco Limited
Vice President, Investor Relations & Strategic Analysis