The Teck Resources logo is seen on a podium before the company's special meeting of shareholders, in Vancouver, B.C., Wednesday, April 26, 2023. THE CANADIAN PRESS/Darryl Dyck
Teck Resources Ltd. has completed its previously disclosed transaction to sell minority stakes in its coal business to Nippon Steel Corp. of Japan and South Korean steelmaker Posco.
In this agreement, Nippon Steel has acquired a 20% interest in Teck's coal business, Elk Valley Resources, relinquishing its prior 2.5% stake in one of Teck's coal operations and providing US$1.7 billion in cash. Posco, on the other hand, exchanged its interest in two of Teck's coal operations for a three percent stake in the overall steelmaking coal operation.
These transactions are part of a larger deal unveiled by the Vancouver-based mining company in November. The comprehensive agreement involves Glencore, a global giant, paying US$6.9 billion for a 77% stake in Teck's coal business. However, the Glencore deal is still subject to regulatory scrutiny and is anticipated to be finalized in the third quarter of 2024.
Upon the completion of the Glencore transaction, Teck will divest its exposure to coal entirely. This strategic move positions the company to concentrate on expanding its copper and zinc production, aligning with the increasing global demand for these metals.
