Glencore is set to acquire a 77 per cent stake in Teck Resources’ steelmaking coal subsidiary Elk Valley Resources (EVR) in a $US6.93 billion ($10.6 billion) cash deal.
“We are pleased to have reached agreement to acquire Teck’s steelmaking coal operations in the Elk Valley,” Glencore chief executive officer Gary Nagle said.
“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.”
In early April, Teck turned down Glencore’s $US23 billion offer, which lead to Glencore adding $US8.2 billion in cash to the takeover offer.
Not long after this, Teck withdrew its proposal to split the company, which industry experts said may cause Glencore to attempt another takeover offer. Glencore lobbed an alternative proposal for the takeover in June.
Nagle said the major miner would be judicious in ensuring the Elk Valley acquisition would benefit all stakeholders.
“Glencore has high regard for the business that has been developed over many decades in British Columbia and looks forward to maintaining and enhancing its operational performance, environmental stewardship and social contribution,” Nagle said.
“We are dedicated to working with all governing bodies and stakeholders to ensure that the transaction is of benefit to Canada, which includes a commitment from Glencore regarding employment, engaging in further reclamation efforts and to engage constructively and meaningfully with the Indigenous Nations in the Elk Valley.
“This transaction also deepens our longstanding commitment to Canada, supporting our position as one of the largest diversified miners and suppliers of critical minerals in Canada, in one of the world’s leading mining jurisdictions.