One of the world’s largest mining companies is in talks with LNG Canada to sell or lease a wharf and its attached land at its port facility in Kitimat, B.C.
Rio Tinto (NYSE: RIO) announced on February 12 it has entered into an option agreement with LNG Canada, which plans to build and operate a liquefied natural gas plant in the northern B.C. community.
"This is an excellent example of how we can generate meaningful value from our existing assets by selling options on port facilities to LNG Canada enabling it to share one of the best deep water ports on the western seaboard of the country,” Rio Tinto CEO Sam Walsh said in a release.
“This innovative approach will provide an expanded gateway for Canadian resources to worldwide markets which has the potential to benefit the communities and economy of British Columbia.”
The financial arrangements behind the deal, which provides LNG Canada with options payable against project milestones, were not disclosed.
“We believe the LNG Canada project represents the best opportunity to bring the liquefied natural gas industry and its benefits to the people and communities of British Columbia," LNG Canada vice-president Andy Calitz said in a release.
