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Teck waits on oil sands price



By Upstream staff 

Teck Cominco is waiting to see how much its investment in the Fort Hills oil sands project in Alberta will cost before it decides how to deploy its hoard of cash, company vice president Mike Agg said today.

Teck Cominco, North America's largest zinc producer, has a 15% stake in the Fort Hills project, a joint venture with Petro-Canada and UTS Energy.

"The biggest uncertainty that we have to deal with is the magnitude of our commitment to the Fort Hills oil sands project," said Agg, vice president of refining and metal sales, told Bear Stearns industry conference.

Petro-Canada, the lead partner, is still doing preliminary planning for the project and is looking at a wide range of development alternatives.

Agg said the miner's share could range from C$1 billion (US$877 million) to C$3 billion, depending on the scale of the project.

"Until we know this, we cannot make any major commitments regarding capital allocation," he said.


Thursday, 30 November, 2006, 18:32 GMT  | last updated: Thursday, 30 November, 2006, 18:32 GMT

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