The firms expects a copper supply gap of 13.2 million tonnes, which is expected to peak in 2025 due to declining grades, protracted permitting timelines and underinvestment.
As part of the restructuring, Teck will distribute common shares in Elk Valley Resources to its current shareholders, retaining a considerable interest in the steelmaking coal cash flows in a transition period, equivalent to an 87.5% interest in gross revenue royalty.
It also noted it had reached an agreement with its steelmaking coal joint-venture partners Nippon Steel Corp. and POSCO to exchange their minority interests in two of their operations for interest in the new business.
Teck has been weighing options for its metallurgical coal division for over a year, as the commodity is used in steelmaking, one of the most polluting industries.
The unit, made up of four mines in Elk Valley, British Columbia, has been hit by several issues in the past three years,…
