OTTAWA: Teck Resources Ltd, one of Canada’s leading mining companies, announced Tuesday the full sale of its steelmaking coal business in a series of deals valued at US$8.9 billion.
In an investor conference call, the Vancouver-based mining company said Swiss commodities giant Glencore has agreed to pay US$6.9 billion to acquire a 77 per cent controlling interest in Elk Valley Resources, the platform of Teck’s coal business.
Japanese company Nippon Steel Corp. (NSC) will acquire a 20 per cent stake and South Korean steelmaker POSCO will take the remaining 3 per cent stake, the company said.
Transactions with NSC and POSCO are expected to close in the first quarter of 2024, and transaction with Glencore is expected to close in the third quarter of 2024.
According to the company, Glencore and NSC transactions are not inter-conditional and the deals are subject to several conditions, including approvals under the Investment Canada Act as well as other competition and regulatory approvals in several jurisdictions.
According to local media reports, Ottawa has said that any takeover bid for Teck would go through a rigorous approvals process.
Founded in 1913, Teck is one of Canada’s largest mining companies with coal accounting for about 60 per cent of its annual revenue. Upon the completion of the transaction, Teck will become a much smaller company with a focus on copper and zinc.–Bernama-Xinhua