After a gruelling nine-month battle that included everything from a last-minute suspension of a shareholder vote to talk of a potential hostile takeover, Teck Resources has finally found a way to separate its coal and metals operations and hopefully keep the Investment Canada Act happy. Teck Resources first expressed its interest to buy Teck earlier this year, and it is the one taking over most of Teck’s steelmaking coal operations.
The Swiss mining giant Glencore will acquire 75 per cent of Teck’s steelmaking coal operations for US$6.9 billion, while Tokyo-based Nippon Steel Corp. will acquire 20 per cent for US$1.3 billion and Posco Holdings Inc. will acquire three per cent. The deal, however, will be reviewed under the Investment Canada Act (ICA), which monitors investments made by non-Canadians to assess the net benefit to this country’s economy. Teck Resources will retain its other assets, such as lithium, copper and nickel, which are expected to be in high demand during the energy transition away from fossil fuels. Teck is only selling its coal assets that are near the towns of Sparwood and Elkford in British Columbia’s scenic Kootenay region
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