(Kitco News) - Teck Resources (TSX: TECK.A and TECK.B) today announced an agreement with PolyMet Mining (TSX: POM) to form a 50:50 joint venture to advance PolyMet Mining's NorthMet project and Teck's Mesaba mineral deposit, both located in Minnesota, USA.
The company said that the joint venture will be named NewRange Copper Nickel LLC, adding that Glencore will retain its majority equity interest in PolyMet and provide financial support for its share of the funding commitment to the joint venture.
"The NewRange Copper Nickel joint venture brings together two large, well defined mineral resources in the established Iron Range mining region of Minnesota," said Don Lindsay, President and CEO. "This agreement will help unlock a new domestic supply of critical metals for the low-carbon transition through responsible mining."
The NorthMet project is expected to produce 29,000 tonnes of ore per day over a 20-year permitted mine life, with first production targeted for 2026. Over its first full five years of operations, NorthMet is expected to deliver annual payable production of 30,000 tonnes of copper, 3,600 tonnes of nickel, 58,000 ounces of palladium, and 12,000 ounces of platinum.
The Mesaba mineral deposit, located in the Duluth Complex near the NorthMet project, contains one of the world's largest undeveloped copper-nickel resources. While further studies and community consultations are required to fully define the long-term development potential, Mesaba represents a strategic metal resource for North America, Teck said.
According to the company's statement, closing of the transaction will be subject to customary closing conditions, including receipt of all required regulatory approvals.
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