Teck Resources Limited announced today that the sale of its remaining 77% interest in the steelmaking coal business, Elk Valley Resources (“EVR”), to Glencore has now received all necessary regulatory approvals.
The transaction is now expected to close on July 11. Teck expects to receive total cash proceeds of US$6.9 billion (CAD $9.5 billion) from the sale of the 77% interest in EVR, excluding closing adjustments.
“This transaction marks a new era for Teck as a company focused entirely on providing metals that are essential to global development and the energy transition,” said Jonathan Price, President and CEO. “Moving forward as a pure-play energy transition metals company, we will build on our core portfolio of strong, cash-generating assets through development of our near-term copper growth projects. Completion of this transaction will provide substantial funding for our projects, giving Teck a pathway to increase copper production by a further 30% as early as 2028.”
“This transaction will enable us to reduce debt and retain significant cash to fund our near-term metals growth and maintain a resilient balance sheet, while also providing a significant return of cash to our shareholders,” said Price.
Glencore expressed pleasure to have reached regulatory approvals to acquire Teck’s steelmaking coal operations in the Elk Valley. These world-class assets and the experienced people that operate them are expected to meaningfully complement their existing thermal and steelmaking coal production located in Australia, Colombia and South Africa. Glencore chased the purchase and has committed to business as usual in the Elk Valley.
Wildsight, with their vision to protect our natural world for future generations, wrote; Glencore was required to make a binding commitment that it will cover the cost of cleaning up environmental damage from these mines through to 2050. This commitment will stand regardless of whether Glencore decides to sell, demerge or otherwise dispose of the mines.
“While Wildsight is celebrating the government’s attention to the potential environmental ramifications of this sale, the length of Glencore’s commitment is too short to match the scale of the water pollution stemming from these mines,” says Simon Wiebe, Mining Policy and Impacts Researcher at Wildsight.
“Indigenous and local communities in this watershed will be dealing with this pollution for at least a century. Who’s going to pay for the cleanup after 2050?
“We’re now looking to the government for greater transparency around the details of Glencore’s commitment to see exactly how it will be legally enforced,” Simon says.
Fernie.com congratulates and welcomes Glencore to the Elk Valley!
Images: Teck
