Teck Resources Ltd. has announced that it will spin off its coal operations into a separate company, to be named Teck Metals Ltd. The new company will focus on the exploration and development of mineral resources, including copper, zinc and lead.
Teck Resources is one of the world’s largest producers of metallurgical coal and has operations in Canada, the United States and Chile. The spin-off of its coal operations is part of a larger restructuring effort that is intended to create two distinct businesses – Teck Resources and Teck Metals.
Teck Resources will continue to focus on the development of its core base and specialty metals, as well as its energy business, which includes oil sands and liquefied natural gas. Teck Metals, on the other hand, will focus on the exploration and development of mineral resources, including copper, zinc and lead.
The spin-off of Teck Metals is expected to be completed by the end of 2021. Once the spin-off is complete, the two companies will operate independently, with their own management teams, boards of directors and capital structures.
The spin-off is part of Teck Resources’ ongoing efforts to become a more focused and efficient company. The company believes that the spin-off will enable it to better capitalize on the opportunities and challenges in the markets in which it operates. The spin-off is also expected to create value for shareholders by unlocking the potential of the two companies and providing them with more focused strategies.
