Teck closes sale of steelmaking coal business to Glencore

Canadian mining company Teck Resources (Teck) has completed the sale of its remaining 77% stake in the steelmaking coal business EVR to Glencore.

Subject to customary closing adjustments, Teck received total cash proceeds of $7.3bn for this divestiture.

Earlier this month, Teck obtained all necessary regulatory approvals for divesting its remaining 77% stake in EVR.

Teck stated that it intends to use the proceeds from this transaction to repurchase up to C$2.75bn of its Class B subordinate voting shares, reduce its debt by up to $2bn and invest in copper growth opportunities.

At that time, Teck president and CEO Jonathan Price commented: “Completion of this transaction will provide substantial funding for our projects, giving Teck a pathway to increase copper production by a further 30% as early as 2028.

“This transaction will enable us to reduce debt and retain significant cash to fund our near-term metals growth and maintain a resilient balance sheet, while also providing a significant return of cash to our shareholders.”

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Your download email will arrive shortly

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The completion of the EVR sale positions Teck as a leading producer of energy transition metals, ready to unlock the value of its copper growth portfolio.

Teck operates “long-life, high-quality producing assets in stable and well-established jurisdictions” across the Americas.

With the ramp-up of the QB mine in 2024, the company anticipates doubling its copper production to nearly 600,000 tonnes annually.

In January this year, the Canadian company announced the divestiture of a minority stake in EVR to Nippon Steel (NSC) and POSCO.

As part of the deal, NSC acquired a 20% interest in EVR by exchanging its previous 2.5% interest in Elkview Operations and paying Teck $1.3bn in cash at closing, with an additional $400m to be paid from EVR’s future cash flows.

POSCO exchanged its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% stake in EVR.