Fording River Operations, one of our four steelmaking coal operations located in the Elk Valley of British Columbia. Teck Photo
Mar 1, 2023
Teck Resources recently announced their plan to split the company in two, separating its steelmaking coal business from its base metals operations. This lead to the formation of Elk Valley Resources (EVR) and Teck Metals Corp. Elk Valley Resources took the time to respond to questions on February 23 after the announcement.
Q. With EVR’s independence and localized operational focus will EVR prioritize a housing solution for its staff within the Crowsnest Pass as one of your stakeholder communities?
A. As a standalone company, EVR will maintain its current commitments to Crowsnest Pass and continue to work closely with the community on important issues, including housing. Creating jobs and prosperity for the communities where we operate has always been a core value for Teck and this will continue as EVR. The Elk Valley operations create or sustain about 600 jobs in Crowsnest Pass and contribute about $20 million annually to the community’s GDP.
Q. What are the thoughts on permitting? Is there any risk to permitting now that the EVR company is smaller? Is there any loss of leverage by not being a “global” company?
A. Not at all. As the world’s second largest exporter of seaborne steelmaking coal, EVR will be a globally significant resource company with a focus on the sustainable mining of steelmaking coal. EVR’s low carbon-intensity high quality steelmaking coal is sought after by the world’s largest steelmakers and EVR has substantial reserves to support production for decades to come.
Q. Now that Teck Metals and EVR are two distinct companies, many of the support group synergies will be lost and there will be a requirement to double up on these roles. Is the plan to keep the corporate office smaller and have these roles based locally?
A. EVR will continue to be headquartered in Vancouver with offices in Sparwood and Calgary. EVR’s largest office will be in Sparwood, and we are proceeding with the construction of a new office building. There will be no change to the economic contributions made to local communities and we don’t expect any reductions in our workforce as a result of the separation.
Q. I understand that the direction of EVR is to create a stable production output rather than expansion and growth, but this will still require permitting and additional resources in the future. Any thoughts on trying to purchase/permit any of the coal reserves on the Alberta side?
A. EVR will be focused on the four current producing operations and its reliable logistics chain including ownership of the newly expanded coal-handling facilities at Neptune Terminals in North Vancouver, B.C.
Q. EVR has stated that it will continue to be nature positive and net zero emissions, are there any thoughts on joining the project that Montem and TransAlta are starting at the old Tent Mountain site or plans to do something similar at one of the existing sites to generate cleaner power for the operating sites?
A. EVR will maintain goals for net zero operations by 2050 and to become nature positive by 2030. We are always open to partnerships that help advance those priorities.
More information on the split is available at teck.com/news/news-releases/2023/teck-to-spin-off-steelmaking-coal-business-to-shareholders.