Glencore (LON: GLEN) scrapped on Wednesday plans to separate its coal division, which it had announced following its acquisition of assets from Teck Resources last year (TSX: TECK.A, TECK.B)(NYSE: TECK), as shareholders opposed the move.
The Swiss miner and commodities trader said in November it would merge Teck’s steelmaking coal business with its own coal assets, after which it would demerge the combined unit.
https://www.nationalobserver.com/
A Swiss-based mining company with a sketchy foreign business record that won approval to take over Teck Resources’ B.C. coal mines has MPs from multiple parties and environmental groups up in arms.
François-Philippe Champagne, federal Minister of Innovation, Science and Economic Development, approved mining giant Glencore’s $12.3-billion takeover of Teck Resources’ coal mines — called Elk Valley Resources — on July 4.
(Bloomberg) — The world’s biggest miners are back in serious dealmaking mode and Teck Resources Ltd. is taking center stage.
The Canadian miner, which has exited its coal business with a sale this month to Glencore Plc, is drawing attention from across the industry because of its attractive copper assets, as the biggest names position for the next wave of activity in the wake of BHP Group’s failed bid for Anglo American Plc.
MiningWatch report question’s Swiss mining giant’s track record
Canadian and British mining watchdogs are criticizing the Trudeau government’s approval of the sale of B.C. steel-making coal mines to Glencore Plc, saying it’s a bad deal for Canada.
On July 4, Canada’s Minister of Innovation, Science and Economic Development, François-Philippe Champagne, approved the sale of 77 per cent of the B.C. metallurgical coal mines (Elk Valley Resources) owned by Teck Resources in the southeastern Kootenays to Glencore plc for $9.5 billion. The sale closed July 11.
https://www.cbc.ca/news/canada/british-columbia/
Teck Resources said it expects to receive $9.5 billion from the sale, excluding closing adjustments
The last hurdle in Teck Resources Ltd.’s years-long effort to off-load its coal mining business and become purely a metals producer is cleared after the federal government approved the sale of the operation to Swiss commodities giant Glencore.
In a statement posted Thursday, Industry Minister François-Philippe Champagne said the green light comes with “strict” conditions and represents a “much narrower” transaction than Glencore’s hostile takeover attempt of Teck last year.
MELBOURNE, June 20 (Reuters Breakingviews) – Coal is doomed, or so the energy thesis goes. Many banks, insurers and investors have backpedalled from or abandoned the carbon-belching fossil fuel, prompting companies that excavate it to complain they cannot get mainstream or affordable financing.
One corner of the industry, however, is burning strongly: the coking, or metallurgical, variety used to make steel. For sellers, it’s a diamond underneath the growing pile of mining M&A. Buyers, however, are in a race against low-emissions alternatives to justify their strategies.
https://www.northernontariobusiness.com/
Stakeholders champion city as leader in critical minerals production
The Sudbury Basin has been a mining hotspot for more than a century, but as demand grows for critical minerals like nickel, there’s never been a more exciting time for the industry than right now.
That’s according to Gord Gilpin, the director of Ontario operations for Vale Base Metals, who led off a Sudbury-themed panel discussion at the BEV In Depth: Mines to Mobility conference May 30 at Cambrian College.
(Bloomberg) — A heated competition for copper among some of the biggest commodity traders is creating opportunities for miners to negotiate favorable terms ranging from huge upfront payments to extra-long contracts.
Recent moves by cash-flush energy traders including Mercuria Energy Group Ltd. to expand in metals — a market long dominated by Glencore Plc and Trafigura Group — are raising tensions and sparking a scramble for contracts, at a time when the industry is already facing an unprecedented supply squeeze in copper ore.
Glencore Plc will start consulting with shareholders on the future of its coal business as soon as its deal to buy Teck Resources Ltd.’s mines closes later this year. Crucially, Glencore said that should the majority of shareholders support keeping its coal mines, the company will not proceed with a vote.
Glencore’s coal business is one of its most profitable units, driving record returns in recent years, and the plan to exit the fossil fuel and list a new company in New York represented a major strategic pivot under current boss Gary Nagle.
Commodities group Glencore (LON: GLEN) is studying an approach for Anglo American (LON: AAL) two sources said, a development that could spark a bidding war for the 107-year old mining company.
Glencore has not yet approached Anglo, one of the sources said. The discussions are internal and preliminary at this stage and may not result in an approach, the source added. “We do not comment on market rumour or speculation,” a Glencore spokesperson said.
https://www.thesudburystar.com/
John Caruso is a Sudbury businessman and a concerned citizen.
Canada and Ontario are willing to sell off our non-renewable resources with little concern for the host community
There is something wrong with this picture: As our city moves toward some historic investments in quality-of-life assets, concerns are being raised regarding long-term debts being incurred and their impact on residential taxes.
I strongly believe that the planned investments in a new event centre and cultural hub at Tom Davies Square are critical investments in our ability to attract and retain population and economic growth.
(Bloomberg) — Several of Glencore Plc’s largest shareholders believe that the company should retain its coal assets, according to people familiar with the matter, throwing a proposed spinoff into doubt.
Glencore, the world’s largest shipper of thermal coal with a market capitalization of about $73 billion, had said it intended to spin the business off within two years of closing a deal to buy the steelmaking coal assets of Teck Resources Ltd.
Horizonte Minerals looking at sale of Brazilian nickel mine as investors fear Indonesia is flooding the market
Glencore-backed Horizonte Minerals has failed to secure financing to complete its nickel mine in Brazil following soaring costs and rising investor concern that Indonesia is flooding the market for the electric vehicle battery and steelmaking ingredient.
The London-listed group said in a statement on Monday that it was now exploring a sale, liquidation, or raising financing at the subsidiary level, following an 87 per cent increase in the estimated cost to build the Araguaia nickel mine, to more than $1bn.
LONDON, March 22 (Reuters) – A growing group of Glencore investors are keen for it to keep mining coal instead of spinning out the soon-to-be enlarged unit, with one eye on its financial outlook and another on the environmental benefits of keeping the fuel in-house.
Echoing a demand last week by activist Tribeca Investment Partners, investors said the polluting fossil fuel would be a lucrative option – for a decade or two at least – even as it is phased out in favour of renewable energy.
https://www.theglobeandmail.com/
For the resources industry, the trick to meeting ESG standards was pretty simple: sell your dirty fuels, especially coal. If you did, investors who cared about the health of the planet would love you, and your company’s valuation would go up.
The formula seemed solid a few years ago, and a big number of mining giants sold or spun off their coal assets. Canada’s Teck Resources was the latest to pursue the black-to-green transition with the sale, announced last year but not yet approved by Ottawa, of its metallurgical coal business to Switzerland’s Glencore.
