Teck Resources Limited, one of the largest diversified mining companies in the world, announced on March 4, 2021 that it will spin off its coal business into a new entity called Teck Metals Ltd. The move is part of the company’s strategy to focus on its core metals businesses and reduce its exposure to the volatile coal market.
The spin-off of the coal business is part of Teck’s ongoing transformation. In 2020, the company announced a plan to reduce its exposure to coal and focus on its core metals businesses, including copper, zinc and nickel. The spin-off of the coal business is the latest step in this transformation.
Teck Metals will be a stand-alone company, with its own board of directors and management team. The company will be focused on the exploration, development and production of metallurgical coal, which is used in steelmaking.
Teck Metals will be headquartered in Vancouver, Canada, and will be listed on the Toronto Stock Exchange. The company will be led by Chief Executive Officer Don Lindsay. Lindsay has been with Teck Resources since 2011 and has extensive experience in the metals and mining industry.
Teck Metals will be well-positioned to capitalize on the growing demand for metallurgical coal. Metallurgical coal is used to make steel, which is used in a wide range of industries, including construction, automotive and energy. Demand for steel is expected to grow in the coming years, driven by increasing infrastructure spending and urbanization.
Teck Metals will have a portfolio of metallurgical coal assets, including the Fording River and Elkview mines in British Columbia, Canada, and the Greenhills mine in Alberta, Canada. The company will also have interests in the Quintette and Line Creek mines in British Columbia. Teck Metals will have a strong balance sheet, with approximately $2.5 billion of cash and equivalents. The company will also have access to Teck Resources’ existing debt facilities.
Teck Metals will be well-positioned to capitalize on the growing demand for metallurgical coal. The company’s focus on operational excellence and cost discipline will enable it to remain competitive in the global metallurgical coal market. Teck Resources will retain a significant equity interest in Teck Metals, and will remain committed to supporting the company’s growth and success. The spin-off of the coal business is expected to be completed by the end of 2021.
The spin-off of the coal business is the latest step in Teck Resources’ transformation. The company is focused on creating value for shareholders by investing in its core metals businesses and reducing its exposure to the volatile coal market. Teck Resources is a diversified mining company with interests in copper, zinc, nickel and metallurgical coal. The company is one of the world’s largest producers of these commodities, and is well-positioned to capitalize on the growing demand for metals and metallurgical coal.
The spin-off of the coal business will allow Teck Resources to focus on its core metals businesses and reduce its exposure to the volatile coal market. Teck Metals will be well-positioned to capitalize on the growing demand for metallurgical coal, and will have a strong balance sheet and access to Teck Resources’ existing debt facilities. The spin-off of the coal business is expected to be completed by the end of 2021.
