VANCOUVER - Teck Resources Ltd. (TECKb.TO) has sold a 30 per cent stake in its Quebrada Blanca Phase 2 project to Sumitomo Metal Mining Co. Ltd. and Sumitomo Corp. for US$1.2 billion.

The Vancouver-based miner also says that its board has approved the project for full construction with first production expected in the second half of 2021. 

Quebrada Blanca Phase 2 is a massive undeveloped copper project in Chile.

The Sumitomo deal will reduce Teck's estimated share of remaining contributions to build the mine to US$693 million.Teck will retain a 60 per cent stake in the project, while ENAMI, a Chilean state agency, will hold a 10 per cent non-funding interest.

The project is expected to have an initial mine life of 28 years with 316,000 tonnes of copper equivalent production per year for the first five full years.