Teck Resources Ltd. has held talks with Lundin Mining Corp. and Glencore PLC as the Vancouver mining company continues to weigh its options for unloading its highly profitable but out-of-favour coal business.
Mining industry sources said that Teck chief executive officer Don Lindsay held deal talks with Toronto-based copper miner Lundin and Glencore, the Swiss mining and commodities trading giant, in the past year or so, but discussions with both companies ultimately went nowhere.
The sources said that Teck, which is Canada’s biggest base metals mining company, with a market value of $17.5-billion, is working with the Toronto office of Barclays Investment Bank on the possible sale or spinoff of its coal division.
They said that a spinoff as a separate, publicly traded entity appears more likely than a sale because most diversified mining companies want to eliminate coal from their portfolios, and it is getting harder to secure bank financing for coal deals. Barclays itself has faced public scrutiny for its participation in coal transactions.
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