By Canadian Press

Ottawa approves sale of Teck’s steelmaking coal business to Glencore

Jul 5, 2024 | 6:26 AM

VANCOUVER — Ottawa says it has approved Teck Resources Ltd.’s sale of a majority stake in its steelmaking coal business to Swiss commodities giant Glencore.

In a statement posted Thursday, Industry Minister François-Philippe Champagne says the green light comes with “strict” conditions and represents a “much narrower” transaction than Glencore’s hostile takeover attempt of Teck last year.

Teck says the latest development means the sale of its remaining 77 per cent interest in the steelmaking coal business, Elk Valley Resources, has now received all necessary regulatory approvals and is expected to close next Thursday. The Vancouver-based miner says it expects to receive $9.5 billion from the sale, excluding closing adjustments.

The company’s president and CEO Jonathan Price says the move marks a “new era” for Teck, allowing it to focus entirely on producing metals that are essential to global development and the energy transition, which includes increasing copper production by 30 per cent as early as 2028.

As part of the transaction, Champagne says Glencore has committed to establishing and maintaining a Vancouver head office for Elk Valley Resources for at least 10 years, along with regional offices in Calgary and Sparwood, B.C.

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The conditions also include ensuring the majority of Elk Valley Resources’ directors, and two-thirds of its executives or senior managers, are Canadian for the same duration.

This report by The Canadian Press was first published July 5, 2024.

Companies in this story: (TSX:TECK.B)

The Canadian Press