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Teck sells off steelmaking coal business

Nicholas L. M. Allen

Nov 15, 2023

Teck claims this sale will add to their growth as a “Canadian-based, global critical minerals champion” while ensuring socially and environmentally responsible steelmaking coal operations.

Teck Resources Limited (Teck) announced it has agreed to sell its entire interest in the steelmaking coal business, Elk Valley Resources (EVR), through a sale of a majority stake to Glencore plc (Glencore) on November 14.

The sale has an “implied enterprise value” of US$9 billion, with a sale of a minority stake to Nippon Steel Corporation (NSC).

“This transaction will be a catalyst to refocus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company,” said Jonathan Price, President and CEO of Teck. 

Price shared that the sale will ensure Teck is “well-capitalized” from their base metals business. 

“Glencore has made strong commitments that will create new benefits for Canada and the Elk Valley and ensure responsible stewardship of the steelmaking coal operations for the long term,” added Price.

According to Sheila Murray, the Chair of the Board at Teck, they undertook a comprehensive process to identify a separation transaction that was in the company’s best interests.

“This transaction unlocks significant value for Teck and its shareholders while also supporting continued responsible operation of the steelmaking coal assets for the long term,” said Murray.

The sale sets the stage for Teck to see continued growth as a major Canadian-based producer of copper and other future-oriented metals, while preserving the jobs and operations of the coal mines in the Elk Valley, explained Dr. Norman B. Keevil, Chairman Emeritus at Teck. 

“This company was built on a foundation of sound geoscience and engineering excellence, with a record of successful mine-building second to none. That is the same foundation we see for Teck’s future. It’s time to get on with it,” said Keevil.

Glencore has agreed to acquire 77 per cent of EVR for US$6.9 billion in cash, payable to Teck at closing of the transaction. NSC has agreed to acquire a 20 per cent interest in EVR in exchange for its current 2.5 per cent interest in Elkview Operations plus US$1.3 billion in cash payable to Teck at closing of the NSC transaction.

According to the release from Teck, they will continue to operate the steelmaking coal business and retain all cash flows from EVR until closing of the Glencore transaction, estimated to be US$1 billion. After that, Teck will have no further financial interest in Elk Valley Resources.

Closing of the Glencore transaction is subject to conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions, and is expected to occur in late 2024. The NSC transaction is also subject to customary conditions, including receipt of certain competition approvals, and is expected to close in the first quarter of 2024. These transactions have no conditions depending on the other.

Teck claims this sale will add to their growth as a “Canadian-based, global critical minerals champion” while ensuring socially and environmentally responsible steelmaking coal operations and benefits for Canada and British Columbia, along with the employees, communities and Indigenous Peoples of the Elk Valley.

To support enhanced benefits to Canadians and Elk Valley residents, Glencore has made commitments that will ensure that:

EVR will continue to operate in Canada through a Vancouver head office and regional offices in Calgary and Sparwood including completing the construction of a new Sparwood office. 

EVR will maintain significant employment levels in Canada with no net reduction in the number of employees in the business in Canada as a result of the transaction.

EVR will increase capital expenditures in Canada such that they will amount to over CAD$2 billion (excluding deferred stripping) over three years.

EVR will increase research and development activities in Canada to at least CAD$150 million over three years, including on innovation in relation to water quality treatment technologies – a 50 per cent increase over current levels.

EVR will increase its contributions to Canadian sponsorship, community and charitable programs.

EVR will participate as a major funding partner up to CAD$15 million for the proposed renal/oncology addition to the East Kootenay Regional Hospital in Cranbrook.

EVR will have a goal to become a nature positive business by conserving or rehabilitating at least three hectares for every one hectare affected by its mining activities going forward.

EVR will develop and implement a climate transition strategy which will include a long-term goal of net zero by 2050.

EVR will honour the existing agreements between EVR and Indigenous Nations and will work with local Indigenous Nations to identify opportunities to increase participation in benefits from the activities of EVR.

Further details on this transaction are available at

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