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New UserTeck Resources Redacts Proposal to Separate Metal and Coal Companies
01 Sep 2023
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.”
One 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.
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Teck Resources’ decision follows commodities trading and mining group
Glencore’s April 11 announcement of a sweetened merger offer. The deal proposed
that Teck shareholders receive 24% of the proposed metals company from the
tie-up, plus $8.2 billion in cash.