(Reuters) - Canadian utility Fortis Inc (FTS.TO) said on Friday it would will buy Teck Resources Ltd’s (TECKb.TO) two-thirds stake in the Waneta dam in British Columbia as well as any related transmission assets for C$1.2 billion ($875 million) in cash.
A Teck unit will then get a 20-year lease to use the assets to produce power for its Trail Operations, the company’s zinc and lead smelting and refining complex in southeastern British Columbia, the companies said in a joint statement.
Vancouver-based Teck, which primarily mines coal, zinc and copper, said last September it was considering selling some infrastructure assets, including the Waneta Dam and the Ridley coal terminal in British Columbia.
Teck, which has been using cash flow and profit to cut debt, had debt of $5.1 billion at the end of the first quarter.
Reporting by Divya Grover and Swetha Gopinath; Editing by Savio D'Souza