Canada approves sale of Teck coal business to Swiss-based mining giant
CREDIT: Teck Resources
Teck’s steelmaking coal operations in Elk Valley, B.C.
Canada’s federal government has approved the sale of Teck Resources’ coal business to Swiss-based mining giant Glencore.
In a statement released on Thursday, Innovation Minister François-Philippe Champagne said he agreed to the sale of B.C.-based Elk Valley Resources – majority owned by Teck – after Glencore made a number of legally binding commitments to keep the firm’s headquarters in the province for at least a decade.
Separately, Champagne also announced new restrictions on foreign takeovers of Canadian mining companies involved in the critical mineral resource sector.
Acquisitions in the sector will only be allowed under “the most exceptional of circumstances. This high bar is reflective of the strategic importance of Canada’s critical minerals sector and how important it is that we take decisive action to protect it,’’ Champagne said in the statement.
In its own statement, Teck said it expects the transaction to close on July 11. It will receive US$6.9 billion (CAD $9.5 billion) from the sale of its 77 per cent stake in EVR and will use the funds to buy back shares, reduce debt and finance expansion of its copper mining operations.
