Asset sale talks appear to be heating up at Teck Cominco Ltd.
The debt-laden miner said yesterday that it has received "indicative offers" for its gold projects, and that there is broad interest from potential investors in its metallurgical coal business.
Vancouver-based Teck has been under massive pressure since October, when it loaded its balance sheet with nearly US$10-billion in debt to buy the assets of Fording Canadian Coal Trust. It turned out to be horrible timing, as commodity prices collapsed and the debt load suddenly became much more imposing. Teck is now in the process of selling assets to pay down the debt.
The easiest assets for the company to move are its gold properties because of the high prices and growing interest in precious metals.
Teck has gold projects in Canada, the United States, Mexico and Turkey. While none of these is expected to fetch a huge price, the company indicated that together they add up to a significant amount.