Teck scraps Cominco brand, recasts business unit structure
Oct 1 2008
VANCOUVER — Teck Cominco Ltd. (TSX:TCK.B) is eliminating Cominco from its name and announcing a five-division structure to reflect its growth through acquisitions.
The five divisions specialize in copper, metallurgical coal, zinc, gold and energy, and the new name and logo "more accurately reflect Teck's diversified portfolio of commodities," the company said Wednesday.
The rebranding is effective immediately but the company's legal name remains Teck Cominco Ltd. until the next annual meeting in April, when shareholders will be asked to approve a change to Teck Resources Ltd.
Cominco, which combined with Teck in 2001, started in 1906 as Consolidated Mining and Smelting Co. of Canada, combining British Columbia-centred assets controlled by the Canadian Pacific Railway. It changed its name to Cominco in 1966.
The Cominco name is most closely linked to its zinc and lead smelter at Trail in south-central B.C., whose long legacy of environmental impact has provoked ongoing legal action by Americans downstream on the Columbia River.
Teck dates to 1913 with Ontario-based Teck-Hughes Gold Mines Ltd.
"Today, under one simplified name and a new strategic business unit structure, Teck is well positioned to build on our strength as a diversified resource leader," CEO Don Lindsay stated.
The five-division structure is intended to increase Teck's ability to seize on opportunities in each commodity segment.
The announcement follows Tuesday's vote by Fording Canadian Coal Trust (TSX:FDG.UN) unitholders to accept a US$14-billion takeover by Teck Cominco.
Teck, which sealed $10 billion in bank financing for the purchase despite tumult in credit markets, takes full ownership of the Elk Valley metallurgical coal operations now held 60 per cent by Fording.
The Teck copper division includes interests in the Highland Valley mine in British Columbia, three South American mines and the Duck Pond mine in central Newfoundland.
The zinc division, in addition to the Trail complex, has mines in Alaska and in Washington state south of Trail.
Teck's gold interests include Hemlo in northwestern Ontario as well as mines in Alaska, Mexico and Chile.
The energy division is focused on the Alberta oilsands, with holdings in the Fort Hills project and various leases.
Along with Wednesday's announcement, Teck said it has named Ray Reipas, formerly vice-president of mining at the Canadian division of global major Total, vice-president in charge of the energy division.
Reipas has 29 years of engineering and management experience in Western Canada and overseas, including senior jobs in both oilsands and coal operations.
Teck's other divisional chiefs are Roger Higgins in copper, Boyd Payne in coal, Mike Agg in zinc and Rob Scott in gold.
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