Metallurgical coal prices are at all-time highs, providing companies like Teck Resources (TSX:TECK.B, NYSE:TECK) – the world’s second-largest producer of steelmaking coal – with a potential big windfall.
And with the long-term demand for steel expected to grow significantly over the next few decades – driven largely by global decarbonization efforts – there is perhaps no better time to be in the met-coal business.
So why would Teck be considering getting out of the metallurgical coal mining business? Bloomberg recently reported that Teck is considering divesting itself of its steelmaking coal portfolio – estimated to be worth $8 billion.
In a recent investor and analyst presentation, Teck CEO Don Lindsay said he wouldn’t comment on speculation about the company’s plans, but went on to explain why it might make sense for Teck to either divest its met-coal assets altogether or at least shrink its coal portfolio in comparison to its growing copper portfolio.
For the rest of this article: https://biv.com/article/2021/10/mining-giant-eyes-transition-copper-coal