Surging coal prices mean that Teck Resources Ltd. may put off selling its metallurgical coal unit indefinitely, but the recovering oil price could see Canada’s biggest diversified miner unload its oil sands unit, says Shane Nagle, analyst with National Bank Financial Inc.
Last year, The Globe and Mail reported that Vancouver-based Teck was exploring the sale of its coal unit. While the biggest by far of Teck’s divisions from a profit and revenue perspective, coal is problematic from an environmental, social and governance aspect.
Not as damaging to the environment as thermal coal, metallurgical coal, used in the production of steel, is still a major contributor to greenhouse gas emissions. Teck has said repeatedly that it is determined to reduce its carbon footprint.
Mr. Nagle said in an interview that because coal prices have become so inflamed this year, nobody is likely to step up because of the risk of buying at the top. Coal prices hit a record high level in the first quarter, thanks in part to a ban on Chinese imports of Australian coal because of a trade dispute.
For the rest of this article: https://www.theglobeandmail.com/business/article-teck-may-unload-oil-sands-unit-but-met-coal-unit-sale-likely-on-hold/