Teck’s coal business could be valued at about $8 billion, according to the people. Rising demand for the commodity could push that figure higher, the people said. Shares of Teck rose 1.8% at 12:45 p.m. in Toronto after declining as much as 0.8% earlier.
Deliberations for a stake sale are in the early stages and there is no guarantee that a deal could be reached, the people said. A representative for Teck Resources declined to comment, while a spokesperson for Arch Resources didn’t immediately respond to requests for comment.
Teck Resources has been working with an adviser on options for the coal business, including a sale or spinoff, Bloomberg News reported in September.
Large commodity producers are under increasing pressure to cut back on fossil fuels in response to investor concerns over climate change. However, coal prices have surged in recent months as an economic recovery from the coronavirus pandemic has driven…
