Teck Resources is exploring spin-out of steelmaking coal operations – by Andrew Willis (Globe and Mail – February 17, 2023)

https://www.theglobeandmail.com/

Teck Resources Ltd. is exploring a spin-out of its steelmaking coal division, or other ways to exit its largest business, as part of a strategic shift to mining metals that will power a greener economy.

Vancouver-based Teck, the country’s largest coal producer, said on Thursday it is “evaluating alternatives for its steelmaking coal business, including the possible spin-out of an interest in that business to its shareholders.” The announcement came after Bloomberg reported the company could announce a transaction as early as next week.

Teck’s coal businesses, made up of mines in southeastern British Columbia, would be worth between $8-billion and $11-billion as a freestanding company, according to analysts. Almost all Teck’s steelmaking coal is exported to Asia.

Teck is also a major copper and zinc producer, and in recent years, it invested heavily in expanding production of metals essential to a low-carbon economy. Coal accounted for $8.7-billion of Teck’s sales and $5.5-billion of the company’s gross profit in the first nine months of 2022, or just over half the company’s revenues and 70 per cent of its profit.

For the rest of this article: https://www.theglobeandmail.com/business/article-teck-resources-spin-out-coal-division/