Coal

https://www.theglobeandmail.com/

Norman B. Keevil’s nightmare is becoming a reality. On Wednesday, Teck Resources cancelled a proposal to split the company in half, a transformational move that would have created two Canadian mining champions. One would produce the metals needed for the energy revolution, while the other would dig up the type of coal used to make steel.

Teck presumably withdrew the plan after learning it lacked the shareholder votes to put it into action. It is thought the company was unable to convince its biggest shareholder, China Investment Corp., with 10 per cent of the common class B shares, to reverse its “no” vote and endorse the split proposal.

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https://financialpost.com/

Takeover by foreign company would be ‘devastating’ to region and make it difficult to communicate, mayors say

Set in British Columbia‘s southeastern Kootenay region, the scenic towns of Sparwood and Elkford are where adrenaline junkies often go to hike while skiers and snowmobilers hit the fresh snow on the Canadian Rockies.

The surrounding Elk Valley area, often called Canada’s Serengeti, is filled with wildlife, wildflowers and, of course, the majestic snow-covered mountains. The valley also has a history of coal mining that stretches back for more than a century and is currently home to four steelmaking coal mines run by Teck Resources Ltd.

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https://www.theglobeandmail.com/

Teck Resources Ltd.’s controlling shareholder Norman B. Keevil was in the dark about which way China Investment Corp. (CIC) voted in its proposed split vote, with only about 12 hours to go before the start of the shareholder meeting, a source familiar with the matter said.

The Globe and Mail is not identifying the source as the person was not authorized to speak publicly. Mr. Keevil declined to comment. Mr. Keevil, along with Japan’s Sumitomo Metal Mining Co., controls the super voting A shares. CIC is Teck’s biggest B shareholder with a 10.3-per-cent stake.

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https://www.theglobeandmail.com/

If Glencore PLC’s pursuit of Teck Resources Ltd. was a Hollywood romantic comedy, we could all write the ending. After a period of high-spirited sparring, this corporate rom-com would climax this week with two crazy kids realizing what the rest of us recognized from the start: that their copper and coal belong together. Harry marries Sally. Glencore merges with Teck. Cue rave reviews.

But mining isn’t the movies. Teck is not falling gracefully into Glencore’s waiting arms, even if the Vancouver-based company’s shareholders turn down the proposed spin-out of Teck’s massive coal business in Wednesday’s vote.

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https://www.theglobeandmail.com/

As the resources industry becomes less local and more global, crucial investment decisions are often determined in far-flung capitals. Such is the case with Teck Resources, Canada’s largest diversified mining company. Sometime in the next two days, possibly the next few hours, an investment committee in Beijing will make a decision that will greatly influence – perhaps even determine – Teck’s future.

China Investment Corp., one of the world’s largest sovereign wealth funds, owns 10.3 per cent of Teck’s single-vote class B shares, making it the largest shareholder of that class. It is on course to become the key vote Wednesday when Teck’s proposal to hive off its coal business from its base-metals operations goes to a shareholder vote in Vancouver.

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https://www.bnnbloomberg.ca/

(Bloomberg) — Glencore Plc’s attempt to seal mining’s biggest deal in a decade has thrust new Chief Executive Officer Gary Nagle into center stage. Little known outside Glencore before taking the job nearly two years ago, the energetic South African is pursuing one of mining’s most unattainable targets, in a bitter brawl that’s headed for a potential climax this week.

While the bid for Canada’s Teck Resources Ltd. is Nagle’s first major move as CEO, the deal itself was dreamed up under his predecessor Ivan Glasenberg, who privately tried and failed to get it done in 2020. Nagle was involved in those efforts too, according to people familiar with the matter, as head of Glencore’s coal business and already earmarked to replace the man that hired him two decades earlier.

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https://www.brantfordexpositor.ca/

Can Canada lead a global mining boom without any prominent global miners?

Swiss commodities giant Glencore PLC‘s unexpected bid to absorb Vancouver-based Teck Resources Ltd. is forcing Canada’s mining sector and government to confront an existential question: can this country lead a global mining boom without any prominent global miners?

Prime Minister Justin Trudeau’s government has repeatedly emphasized that it sees Canadian miners as essential players in the energy transition and Canada’s future economy. Last year, it published the country’s first critical minerals strategy and it has expanded tax credits for critical minerals exploration.

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https://www.theglobeandmail.com/

Jen Hansen is the co-chair of the mining group at Cassels Brock & Blackwell LLP.

Recent headlines have brought a Canadian company, Teck Resources, into the spotlight as the recipient of multiple offers from a foreign buyer, Swiss mining giant Glencore, with likely more to come. If you aren’t involved in the Canadian mining space or perhaps don’t consider yourself supportive of mining, you may want to start paying attention.

The acquisition of an iconic Canadian company by a foreign buyer can have a far-reaching impact. I hope that does not happen, and my desire to see Teck remain a Canadian company goes well beyond a sentimental feeling about ownership and history.

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https://www.theglobeandmail.com/

Glencore PLC is dangling the prospect of a higher takeover offer for Teck Resources Ltd., and possibly even a tender offer, as it urges the company’s class B shareholders to reject the Canadian miner’s proposal to split itself in two when they vote next week.

Glencore of Switzerland earlier this month offered to buy Vancouver-based Teck at a 22-per-cent premium to its market value in a stock-and-cash deal worth roughly US$22.5-billion. The board of Vancouver-based Teck, its management and its controlling class A shareholders have repeatedly rejected Glencore’s advances, saying a takeover would be ruinous to shareholder value.

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https://www.theglobeandmail.com/

Shares of Teck Resources are on fire, and that is a sure sign that hedge funds and other arbitrageurs are building stakes in what could be an epic battle for control of the last Canadian diversified mining company of any size. If their stakes are big enough, they could influence – even determine – Teck’s future ownership.

Teck shares have rallied about $10 since the start of April, taking them to $65 and giving the company a heady market value of almost $34-billion. While no hedgie has declared it is playing the Teck game, the steady price increases and trading volumes of as much as seven million shares a day suggest they are.

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