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Investment Canada Act amendment could complicate Glencore’s pursuit of Teck – by Naill McGee (Globe and Mail – August 14, 2023)

https://www.theglobeandmail.com/

A proposed amendment to the Investment Canada Act could complicate Glencore PLC’s takeover ambitions around Canadian miner Teck Resources Ltd. Last fall, federal Industry Minister François-Philippe Champagne announced a series of changes to the Investment Canada Act that aim to toughen oversight over proposed acquisitions of domestic companies by foreigners.

The changes include requiring acquirers to give Ottawa early notification of their intent to buy Canadian companies, extending the time period for national security reviews, and increasing financial penalties for those who don’t comply with the rules.

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Conference Board forecasts nickel demand will lift all sectors of Sudbury’s economy – by Kate Rutherford (CBC News Sudbury – August 9, 2023)

https://www.cbc.ca/news/canada/sudbury/

An economist says Sudbury’s recovery is on the way but won’t reach pre-pandemic levels until 2026

Nickel prices and rising demand for the mineral will help Sudbury’s local economy ride out a slowing national economy and carry it to pre-pandemic prosperity by 2026. In its most recent report, the Conference Board of Canada says nickel prices jumped nearly 72 percent between 2020 and 2022 buoyed by the war in Ukraine and strengthening nickel demand.

Senior economist Rob Wiebe says it’s precisely that demand and heightened exploration for nickel to produce batteries for electric cars that will fuel investment across different sectors in the city.

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Glencore holds back US$2B for Teck Resources as payouts drop – Thomas Biesheuvel (Bloomberg News – August 8, 2023)

https://www.bnnbloomberg.ca/

Glencore Plc underlined its continued interest in a deal with Teck Resources Ltd. by holding back US$2 billion for a potential purchase of the Canadian miner’s coal business — cash it would otherwise have returned to shareholders.

Glencore disclosed the new deals war chest in its first-half results Tuesday, as it joined rival miners in reporting a steep drop in profits after a retreat in commodity prices combined with a return to more normal trading conditions, following 2022’s wild swings.

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Swiss coal miner Glencore warns NSW against ‘revenue grab’ – by Elouise Fowler (Australian Financial Review – August 2, 2023)

https://www.afr.com/

Glencore, one of the largest coal miners in NSW, is urging the state not to hike coal mining levies in a “revenue grab”, as the Minns government mulls following Queensland’s lead on higher coal royalties. The NSW government signalled a shake-up of coal royalty payments last week amid a broader consultation with the market on how to dent electricity prices after the coal price cap expires mid-next year.

The Switzerland-based miner and commodity trader, which reported 2022 full-year profits of $US34 billion ($51 billion) driven by soaring coal prices, warned the NSW government against changes to the royalty scheme.

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Glencore buys Pan American’s stake in Argentinean copper project – by Cecilia Jamasmie (Mining.com – July 31, 2023)

https://www.mining.com/

Glencore (LON: GLEN) is buying out a 56% stake in Argentina’s MARA copper project from its partner Pan American Silver (TSX, NYSE: PAAS) for $475 million, as part of the miner and commodity trader’s push to increase exposure to the metal.

Pan American acquired a controlling stake in MARA as part of it recent acquisition of Yamana Gold, which closed in March. The project, located in Argentina’s northwestern Catamarca province, was set in December 2020 by integrating Minera Alumbrera’s plant and mining infrastructure with the Agua Rica copper-gold deposit.

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Glencore moves to take full control of PolyMet, developer of Minnesota copper-nickel mine – by Steve Karnowski (Associated Press – July 3, 2023)

https://apnews.com/

MINNEAPOLIS (AP) — Swiss commodities giant Glencore moved Monday to take full ownership of PolyMet Mining, a company that’s developing a copper-nickel mine in northeastern Minnesota with one of Canada’s largest miners, Teck Resources.

Glencore already owns 82% of PolyMet Mining and has long been the project’s main financial backer. It offered Monday to pay around $71 million to raise that stake to 100%, which would take St. Paul-headquartered PolyMet private. Glencore’s proposal represents around a 167% premium over PolyMet’s closing stock price on Friday, and shares surged on the news in Monday’s trading.

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Honouring Sudbury’s fallen miners: ‘It’s a big price to pay for a pound of nickel’ – by Harold Carmichael (Sudbury Star – June 20, 2023)

https://www.thesudburystar.com/

Health and safety in the mining industry in Greater Sudbury has come a long way over the past 95 years, so much, in fact, that where fatal mining accidents were once commonplace, they are now a rarity, according to a retired electrician at Falconbridge Limited.

“Since 1929, 100 men lost their lives,” Tom Rannelli said at the 39th-annual Workers’ Memorial Day service held at the Royal Canadian Legion branch in Falconbridge on Tuesday. “That’s approximately one a year. That’s just at Falconbridge.

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Glencore makes offer for the steelmaking coal business of Teck Resources (Peterborough Examiner/Canadian Press – June 12, 2023)

https://www.thepeterboroughexaminer.com/

VANCOUVER – Swiss company Glencore it has made an offer to buy the steelmaking coal business of Teck Resources Ltd. The company said in a statement Monday it would pay cash for the assets, but did not say how much publicly.

Glencore said it remains willing to pursue its offer for all of Teck, but that it has made an alternative offer for the coal operations that it would combine with its own thermal coal assets.

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Teck in talks with multiple parties regarding its coal business, company says – by Naimul Karim (Financial Post – June 8, 2023)

https://financialpost.com/

‘Our focus on separation is to unlock the full potential of our unparalleled copper growth business’

Teck Resources Ltd. is evaluating multiple expressions of interest in its steelmaking coal business, more than a month after it decided to pull a proposal to divide the company into separate coal and copper operations.

“Our high-margin, long-life steelmaking coal assets … has, in turn, generated considerable interest from various parties,” Teck’s chief executive Jonathan Price said in a press release on June 6. “Our focus on separation is to unlock the full potential of our unparalleled copper growth business.”

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Teck fielding expressions of interest for coal business, as Canadian miner considers new restructuring plan – by Niall McGee (Globe and Mail – June 6, 2023)

https://www.theglobeandmail.com/

Teck Resources Ltd. TECK-B-T is fielding expressions of interest from parties potentially interested in mergers-and-acquisitions transactions concerning its metallurgical coal business, as Canada’s biggest diversified mining company weighs the best path forward after a botched restructuring plan earlier this year.

In April, Vancouver-based Teck did not move forward on a planned split of the business that would have seen it spin off its coal division from its metals mines, after it failed to win sufficient support from shareholders.

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Teck Receives Interest in Coal Business as Glencore Circles – by Jacob Lorinc (Yahoo/Bloomberg – June 6, 2023)

https://ca.finance.yahoo.com/

(Bloomberg) — Teck Resources Ltd. received several proposals for deals involving its coal operations, as the Canadian miner works to draw up a new plan for splitting off the business while rejecting a bid from Glencore Plc.

Teck’s plans to exit coal and create a standalone base-metals company suffered a blow in April when it failed to win enough shareholder support for a complicated spinoff proposal. It maintains that separating from its coal assets will create the most value for shareholders, and is now under pressure to develop a plan more appealing than Glencore’s $23 billion offer for the entire company, especially with the prospect of a sweetened bid on the way.

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OPINION: End game nears in the battle for Canada’s last diversified mining giant, and the odds do not look good for the pursuer – by Eric Reguly (Globe and Mail – June 2, 2023)

https://www.theglobeandmail.com/

The Phoney War was the period early in the Second World War, when there were few battles on the Western Front. The relative calm ended when Germany invaded France in the spring of 1940.

The battle for Teck Resources, Canada’s biggest diversified mining company, is definitely in the phoney war stage. After a raucous start, a whole lot of nothing has happened for weeks in the campaign that will ultimately determine the shape of Canada’s base metals industry. There are signs that a renewed assault on Teck could start soon, one that will make or break the effort by Switzerland’s Glencore to make Teck its own as it strives to become one of the world’s top producers of the metals needed to propel the green energy revolution.

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Glencore said to prepare sweetened Teck bid – by Thomas Biesheuvel, Dinesh Nair and Jacob Lorinc (Bloomberg News – May 30, 2023)

https://www.bnnbloomberg.ca/

Glencore Plc is getting closer to increasing its offer for Teck Resources Ltd., in a move aimed at ending weeks of limbo in the battle over the Canadian miner’s future.

The Switzerland-based commodities giant is working on a potential improvement to its bid that could be announced as soon as the coming weeks, according to people familiar with the matter, who asked not to be identified discussing private information. By raising its offer and ratcheting up shareholder pressure, Glencore is seeking to force Teck to the negotiating table, the people said.

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Glencore signals interest in buying Teck’s coal business even as it pursues the whole Canadian mining company – by Eric Reguly (Globe and Mail – May 16,2023)

https://www.theglobeandmail.com/

The bosses of Canada’s Teck Resources Ltd. and Switzerland’s Glencore PLC have used a mining conference to present starkly different views on how Teck could create value and whether Ottawa would approve a proposed merger of the two companies.

At the same time, Glencore opened the door to buying Teck’s substantial metallurgical coal operations, signalling an interest in owning even a piece of a company attempting an uncertain corporate overhaul.

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Glencore bid for Teck faces stiff Canuck rules, pride as mining M&A activity triples – by Colin McClelland (Northern Miner – May 11, 2023)

https://www.northernminer.com/

Glencore (LSE: GLEN) faces an uphill battle to buy Teck Resources (TSX: TECK.A/TECK.B; NYSE: TECK) because of Canadian nationalism despite surging mergers and acquisitions in the critical minerals space.

The mining industry’s M&A activity is up 283% to US$66 billion so far this year compared with the same period last year while dealmaking across all industries is down 38% to US$1.2 trillion, according to Bloomberg data presented on Wednesday at the Society for Mining, Metallurgy & Exploration’s eighth annual Trends in Mining Finance Conference in New York.

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