Teck Halts QB2 Project Expansion In Chile On Coronavirus Fears
Zacks Investment Research | Mar 18, 2020 09:52PM ET
Teck Resources Ltd (NYSE:TECK) has temporarily suspended construction activities at its major Quebrada Blanca Phase 2 (QB2) project in Chile amid spiraling coronavirus fears. The move is in line with the Chilean government’s efforts to curb the spread of the virus and ensure employees’ safety as well.
The QB2 project will be suspended for initial two weeks, following which Teck will re-check the project status in response to any further development of the COVID-19 situation. The suspension will impact approximately 15,000 workers on the project. QB2 is an important project for Teck, as completion of this project will make it a major global copper producer. In December 2018, the company’s board sanctioned full construction of this project, with the first production targeted for fourth-quarter 2021.
The company has taken precautionary measures to ensure safety of the QB2 project employees and their families, keeping in view that a large number of its workers commute from Chile. Notably, so far, there have been no confirmed cases of the unit’s employees testing coronavirus positive.
Following the news, the company’s shares depreciated 21.5% on Mar 18. Falling copper prices have aggravated the decline. This Zacks Rank #5 (Strong Sell) company’s shares have plunged 73.1% over the past year compared with the Zacks Investment Research
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