08/27/2015 08:58 EDT | Updated 08/27/2016 01:12 EDT

Goldcorp. Teck to combine 2 mine projects in Chile, lower total cost to US$3.5B

VANCOUVER — Two of Canada's largest mining companies, Goldcorp and Teck Resources, say they're going to form a new joint venture in Chile.

Goldcorp (TSX:G) will contribute its El Morro project and Teck (TSX:TCK.B) will add its Relincho project to the new Project Corridor joint venture, which will be owned 50-50 by the two Vancouver-based companies.

They estimate the combined mine with have a 32-year lifespan and produce an average of 190,000 tonnes of copper and 315,000 ounces of gold annually over the first full decade.

They expect significant savings and environmental advantages by combining the two neighbouring projects, which are 40 kilometres apart in the Atacama region of Chile's Huasco province.

Goldcorp chief executive Chuck Jeannes and Teck CEO Don Lindsay say the companies expect to increase financial returns while ensuring the project is developed in partnership with neighbours in the area.

The companies estimate the cost of bringing Project Corridor into production at US$3.5 billion, with the operation providing much of the additional funding required to construct future phases.


The Canadian Press