Raw Material Prices

Glencore Set To Buy Majority Stake in Teck's Met Coal Business

Written by Ethan Bernard

November 14, 2023

Canadian miner Teck Resources has announced the sale of its metallurgical coal business, Elk Valley Resources, with Swiss miner Glencore becoming the majority stakeholder.

Additionally, Japan’s Nippon Steel will assume a minority stakeholder role, Teck said in a press release on Monday.

Terms of the Deal

Glencore will acquire a 77% “effective interest” in the entirety of Teck’s steelmaking coal business for $6.93 billion in cash, the Swiss miner said in a separate release on Tuesday.

Also, Nippon steel will hold a 20% equity interest in Elk Valley Resources, Glencore said.

The final 3% will be owned by South Korean steelmaker Posco.

Teck said it puts a total valuation of the deal at ~$9 billion.

The transaction is subject to mandatory regulatory approvals, and is expected to close in the third quarter of next year. 

CEO Comments

“We are pleased to have reached agreement to acquire Teck’s steelmaking coal operations in the Elk Valley (in British Columbia),” Gary Nagle, CEO of Glencore, said in the company’s release.

“These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa,” he added.

Jonathan Price, Teck president and CEO, also lauded the deal.

“This transaction will be a catalyst to re-focus Teck as a Canadian-based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company,” he said in the company’s release.

Commitment to Canada

Glencore said Elk Valley Resources will continue to operate in Canada through both a head office in Vancouver, British Columbia, and regional offices in Calgary, Alberta, and Sparwood, British Columbia.

Recall that Teck turned down an unsolicited acquisition offer from Glencore in April of around $23 billion to buy the entire company.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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