Teck Resources says still evaluating options on coal business sale

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Teck Resources Ltd. is making progress in evaluating the various offers put forward by prospective buyers of its steelmaking coal business, the Vancouver\u002Dbased…

Teck’s board rejected Glencore’s original offer. But Glencore notched a victory of its own in April, when Teck called off a shareholder vote on its plan to spin off its steelmaking coal operations into a separate company. It had become apparent Teck did not have the required support for its proposal, which Glencore had lobbied against.

Glencore has since presented a new offer to Teck’s board, proposing to acquire the steelmaking portion of the company’s business for an undisclosed amount of cash.Price said the various parties that have expressed interest in Teck’s coal business have brought a forward a “range of proposals,” and added the board will only sign off on a deal that maximizes the value of the business.“We have deliberately sought to keep a very open mind here.

The update on the coal business negotiations came as Teck lowered its annual production guidance for its flagship project — its Quebrada Blanca, or QB2 copper mine expansion in Chile — due to construction and commissioning challenges.Article content The company said Thursday it now expects annual copper production of 330,000 tonnes to 375,000 tonnes, down from its previous estimate of 390,000 tonnes to 445,000 tonnes.

Price said Teck continues to expect the QB2 expansion project to be operating at full production rates by the end of this year, and added the company’s copper production guidance for the mine for 2024-2026 remains unchanged.The company’s profit attributable to shareholders fell to $643 million for the three months ended June 30, down from $1.8 billion during the same period the year before, as global copper prices fell.On an adjusted basis, Teck says it earned $1.

 

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Teck Resources still evaluating options on coal business sale - BNN BloombergTeck Resources Ltd. is making progress in evaluating the various offers put forward by prospective buyers of its steelmaking coal business, the Vancouver-based mining company said Thursday.
Source: BNNBloomberg - 🏆 83. / 50 Read more »