The news comes as no surprise following the announcement last week that the federal government had approved the sale of Elk Valley Resources to the Swiss commodities giant.
Teck Resources Limited today announced that it has completed the sale of its remaining 77% interest in the steelmaking coal business to Glencore plc. Teck received total cash proceeds of US$7.3 billion.
Glencore Canada had initially pursued a $25-billion hostile takeover attempt for all of Teck, a move that sparked economic nationalism concerns in Canada. However, Industry Minister Francois-Philippe Champagne said last week that the green light for the sale of Teck’s coal business comes with “strict” conditions and represents a “much narrower” transaction than Glencore’s hostile takeover attempt last year.
Glencore is one of the world’s largest diversified natural resource companies. With theie purchase of Elk Valley Resources, Glencore inherits a deep history in Canadain mining that pre-dates their previous transactions. Founded in 1974, Glencore inherited a century-old legacy in 2013 through organic growth and Canadian acquisitions. Glencore Canada’s two founding companies, Noranda Mines Limited and Falconbridge Nickel Mines Limited, were created in the 1920s. They merged in 2005 and were purchased in 2006 by Xstrata, which was in turn acquired by Glencore in 2013. William Fernie and twenty imported Cape Breton coal miners started the Elk Valley’s first mine in Coal Creek, east of the present town of Fernie in 1897, in preparation for the arrival of the railroad.
Deeply rooted in Canadian history, Glencore has a strong commitment to Canada and looks forward to being a part of many more historical milestones as time goes on.
Glencore brings substantial economic benefits to the communities in Canada where it operates by employing people, buying goods and services, collaborating with other businesses, and paying taxes and royalties. Additionally, Glencore aims to be an active and valued participant in the communities that host its operations. The company partners with several community organizations to make a difference in the areas of health, education, arts and culture, and the environment. Since 2018, Glencore has contributed approximately $16 million to local and regionally relevant initiatives that help build community capacity and sustainability. Some of these contributions have been directly aligned with the nature of its business, such as investing in research and education in the areas of metals recycling and battery electric vehicle technology.
While some partnerships are directly aligned with its business, other partnerships underline Glencore’s commitments to the local communities where it operates and reflect its values and culture, such as activities promoting health and wellness. Glencore aims to build relationships and foster positive engagement with communities and Indigenous Peoples near its operations.
Once a mine, smelter, or refinery closes its operation in Canada, Glencore upholds its environmental and community commitments by undertaking the closure process in accordance with all regulatory and corporate requirements. Beyond meeting regulatory requirements, the closing of a mine signifies the closing of an important chapter in the community where it takes place. Wildsight made an effort to place conditions upon the sale that requires Glencore to post adequate reclamation securities to protect the environment and local communities when Elk Valley Resources winds down. History will tell the final story in this new chapter of coal mining in the Elk Valley.
The Elk Valley welcomes and looks forward to a long and mutually beneficial relationship with Glencore and wishes Teck all the best moving forward.
