Teck Resources Ltd (USA) (NYSE:TCK) has announced that it has reached an agreement with Goldcorp Inc. (USA) (NYSE:GG), to combine efforts of the two companies in their Chilean mining projects. The operations of the two companies are located 25 miles apart and would be connected through a corridor. Furthermore, Teck Resources has also been named to the Dow Jones sustainability world index. This was the sixth consecutive time that the company was listed in the prestigious list, making it stand amongst the top 10% of the 2,500 largest companies around the world.
Due to the falling prices of metal commodities, both Teck Resources and Goldcorp, have been experiencing a downfall in profit margins and as well as in terms of their stock price. Furthermore, the two companies aim to reduce their environmental footprint in the region through this coalition. To do this, the two companies have agreed to make use of each other’s assets, such as the desalination plant and the concentrator. This will not only reduce the environmental damage, but also ensure that the two companies save huge on their mining efforts. As per recent estimates, the construction of the corridor will cost $3.5 billion, but will ensure that the two companies save $8.4 billion on development costs, combined.
The president and CEO of TCK, Don Lindsay, stated that his company takes into account the environmental and social effects of the region, in every decision that they make. He also expressed his desire to continue this trend, despite the harsh market conditions. The DJSI highlighted the efforts of TCK in biodiversity and asset management, as well as in operational eco-efficiency. Furthermore, the index also awarded the highest rank to TCK for talent attraction and retention. Apart from being listed on the DJSI, Teck Resources is also amongst the Best 50 Corporate Citizens in Canada.
Teck Resources Ltd (USA) (NYSE:TCK) closed at the end of the September 21 session, at a share price of $5.81, after experiencing trade volumes of 9.44 million shares and losing 5.30% of its stock price.