Teck digs itself into oil sands

Teck Cominco Ltd. will be the first mining company to take a major role in the oil sands, paying $475-million for part of the Fort Hills project in a deal that also sets a new benchmark for asset prices in the booming region.

Teck’s acumen in open-pit mining in harsh climates means Petrocan and UTS can realistically get Fort Hills producing 100,000 barrels a day starting in 2010, said Steven Paget, an analyst at FirstEnergy Capital Corp.