Teck Resources Announces Completion of Sale of Elk Valley Resources, Focusing on Energy Transition Metals

Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) has announced the successful completion of the sale of its 77% interest in Elk Valley Resources (EVR) to Glencore plc. The transaction, which has received all necessary regulatory approvals, is expected to close on July 11. Teck will receive total cash proceeds of US$6.9 billion (CAD $9.5 billion) from the sale, excluding closing adjustments.

The sale of EVR marks a significant milestone for Teck as it achieves a complete separation of its metals and steelmaking coal businesses. This strategic move positions Teck for its next phase of growth and responsible value creation. The company’s leadership team is confident that their strategy will maximize long-term value for shareholders and all stakeholders.

Jonathan Price, President and CEO of Teck, stated that the transaction marks a new era for the company, as it becomes solely focused on providing metals essential to global development and the energy transition. Teck will leverage its core portfolio of strong, cash-generating assets to develop its near-term copper growth projects. With the substantial funding from the sale, Teck aims to increase copper production by an additional 30% as early as 2028.

In addition to funding copper growth, the transaction will enable Teck to reduce debt and maintain a resilient balance sheet. The company plans to allocate the proceeds as follows: repurchase up to US$2.0 billion (CAD$2.75 billion) of Class B subordinate voting shares, execute a debt reduction program of up to US$2.0 billion (CAD$2.75 billion), retain funds for near-term copper growth, and allocate an estimated US$750 million (CAD$1.0 billion) for taxes and transaction costs.

Teck’s completion of the sale of EVR positions the company as an industry-leading energy transition metals producer. It operates a premium portfolio of long-life, high-quality producing assets in stable jurisdictions in the Americas. Teck expects to double its copper production to approximately 600,000 tonnes/year with the ramp-up of its QB project in 2024. The company is committed to executing its near-term copper pipeline, including projects such as QB debottlenecking, the Highland Valley Copper Mine Life Extension, Zafranal Project, and San Nicolas Project. These projects offer significant long-term growth potential and are supported by a resilient balance sheet and disciplined capital allocation.

Teck’s share repurchase program will be completed under the normal course issuer bid (NCIB), subject to market conditions and regulatory approvals. The company will determine the timing and quantity of share repurchases based on market conditions and applicable securities laws.

Teck Resources is a leading Canadian resource company focused on responsibly providing metals essential to economic development and the energy transition. With its renewed focus on energy transition metals, Teck is well-positioned to unlock the value of its unrivaled copper growth portfolio.

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