- Teck Resources Ltd. has announced the closing of the sale of a minority interest in its steelmaking coal business to Nippon Steel Corp. and POSCO
- Nippon Steel has acquired a 20 per cent interest in Elk Valley Resources
- POSCO has acquired a 3 per cent interest in EVR
- Teck Resources (TSX:TECK.A) was down C$0.39 to close at C$54.12 on Wednesday
Teck Resources Ltd. (TSX:TECK.A and TECK.B; NYSE:TECK) has announced the closing of the sale of a minority interest in steelmaking coal business Elk Valley Resources (EVR) to Nippon Steel Corp. and POSCO.
Nippon Steel has acquired a 20 per cent interest in EVR in exchange for its prior 2.5 per cent interest in Elkview Operations plus US$1.3 billion in cash paid at closing to Teck and US$0.4 billion paid subsequently to Teck out of cash flows from EVR, according to Wednesday’s news release. POSCO has exchanged its 2.5 per cent interest in Elkview Operations and its 20 per cent interest in the Greenhills joint venture, for a 3 per cent interest in EVR.
Closing of the sale of the remaining interest (77 per cent) in EVR to Glencore PLC is expected to happen in the third quarter of 2024, subject to the satisfaction of customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions.
Vancouver-based Teck Resources is one of Canada’s leading mining companies with major business units focused on copper, zinc and steelmaking coal.
Teck Resources (TSX:TECK.A) was down C$0.39 to close at C$54.12 on Wednesday.
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