Steel Products Prices North America
CRU: Teck To Spin Off Coking Coal Business as it Splits Into Two
Written by CRU Americas
February 23, 2023
Canadian miner Teck Resources plans to divide into base metals-focused Teck Metals and metallurgical coal miner Elk Valley Resources (EVR).
“This transformative transaction creates two strong, sustainable, world-class mining companies committed to responsibly providing essential resources the world needs,” said CEO Jonathan Price.
“Both Teck Metals and EVR have high-quality operating assets and strong financial foundations…. The transaction simplifies the portfolio of each company, allowing for strategic and financial focus and the ability to pursue tailored capital allocation strategies.”
He added the change establishes a pathway to full financial separation of the companies over time.
For now, their creation will provide investors with a choice for allocating investment between two businesses with different commodity fundamentals and value propositions, Vancouver-headquartered Teck Resources said, adding they will both remain committed to strong environmental and social performances.
Subject to shareholder approval, the separation will be structured by spinning off Teck Resources’ metallurgical coal business by distributing EVR’s shares to Teck’s shareholders. Teck Metals will retain a substantial interest in coking coal cash flows for a transition period via an 87.5% interest in royalties and EVR preference shares.
Steelmakers Nippon Steel of Japan and Posco of South Korea have agreed to exchange their minority interests in Teck’s coking coal business’s Elkview and Greenhills operations for interests in EVR. Nippon will also invest CAD $1.025 billion ($761 million USD) ) to give it a 10% stake in EVR; Posco will hold 2.5% of EVR.
“This significant participation by two of the world’s largest steelmakers highlights the long-term, critical importance of high-quality steelmaking coal in order to reduce emissions and build essential infrastructure globally,” Price said.
CRU Americas
Read more from CRU AmericasLatest in Steel Products Prices North America
SMU price ranges: Sheet down broadly, HR $35/t lower
Sheet prices fell across the board this week – largely in response to Nucor’s $65-per-short-ton price cut for hot-rolled (HR) coil on Monday morning. SMU’s HR coil price is $780/st on average, a $35/st decrease week over week (w/w). Our average cold-rolled coil price is $1,090/st (down $30/st w/w). Our galvanized base price is $1,100/st […]
Nucor surprises with $65/ton price drop for HRC
Nucor started off May with a bang, dropping its weekly base spot price for hot-rolled (HR) coil by $65 per short ton (st) this week.
Nucor drops weekly HR coil price by $10/ton
Nucor lowered its weekly base spot price for hot-rolled (HR) coil by $10 per short ton (st) this week.
Nucor holds HR price steady this week
Nucor is holding its hot-rolled (HR) coil consumer spot price (CSP) flat this week.
SMU price ranges: Sheet, plate largely unchanged
Sheet prices varied this week. While hot-rolled (HR) coil pricing was largely flat, cold-rolled (CR) coil and tandem product pricing eased slightly reflecting the momentum shift seen last week for HR coil. SMU’s average HR coil price was flat from last week at $835 per short ton (st) – potentially emphasizing the tension between competing […]