Glencore makes offer for the steelmaking coal business of Teck Resources

VANCOUVER –

Swiss firm Glencore it has made a suggestion to purchase the steelmaking coal business of Teck Resources Ltd.

The firm mentioned in an announcement Monday it will pay money for the property, however didn’t say how a lot publicly.

Glencore mentioned it stays prepared to pursue its supply for all of Teck, however that it has made another supply for the coal operations that it will mix with its personal thermal coal property.

The firm mentioned it’s “fully committed” to making sure an acquisition of the coal business would profit Canada and that it’s open to working with Teck “to identify a comprehensive suite of commitments for the benefit of all relevant stakeholders.”

Teck, which rejected Glencore’s earlier supply for all the firm, mentioned it is reviewing the most recent proposal together with various different potential transactions involving its steelmaking coal business.

“The high degree of interest expressed by a wide range of parties underscores the value of Teck’s high-margin, long-life steelmaking coal assets,” the corporate mentioned in an announcement.

“Teck intends to continue to engage with all parties that have indicated interest to identify a path that realizes value for shareholders while ensuring continued responsible operations in the Elk Valley to support a sustainable future for the benefit of employees, local communities and Indigenous Peoples.”

The Vancouver-based mining firm is working to separate its coal property from its base metallic operations.

Teck referred to as off a shareholder vote in April on its plan to spin off its steelmaking coal operations right into a separate firm after it turned obvious it didn’t have the required help for the proposal and as a substitute mentioned it will pursue another, extra simplified break up.

Teck is managed by the Keevil household, which owns the corporate’s class A shares along with Japanese firm Sumitomo Metal Mining Co. Ltd.

Teck chairman emeritus Norman Keevil has mentioned Glencore’s proposal for all the firm is the mistaken one, on the mistaken time, however that he’s open to speaking about different potential offers as soon as the corporate completes its personal plan to separate its business.

This report by The Canadian Press was first revealed June 12, 2023