Coal news and updates

Teck Changes Proposal To Separate Metal And Coal Business

• Canadian miner Teck Resources is revising its plan to separate its metals and coal companies into two separate assets.
• The company received strong support from its shareholders to split the two activities up.
• Teck Resources’ decision follows commodities trading and mining group Glencore’s April 11 announcement of a sweetened merger offer.

Canadian mining group Teck Resources recently withdrew its proposal to separate its metals and coal companies into two separate assets. The Vancouver-headquartered company announced its plans not to proceed with a vote to divide the business into two separate companies, Teck Resources and Elk Valley Resources, at its April 26 annual and special shareholders meeting.

“We received very strong support from shareholders for the goal of separation, which is to unlock value through creation of a premier, pure-play base metals company and a world-class steel-making coal company,” CEO Jonathan Price said. “We have also listened and heard the feedback that some shareholders would prefer a more direct approach to separation.”

“Our plan going forward is to pursue a simpler and more direct separation,” Price added. “(This) is the best path to unlock the full value of Teck for our shareholders.”Domestic Production of Oil and Gas to Reduce ImportsOne market player told MetalMiner that Teck’s management wasn’t confident of winning a split vote. They added that the company might scrap the proposed royalty payable by the prospective coal company to the metals company due to the split.