The controlling shareholder of Teck Resources Ltd. rejected Glencore91裸聊视频檚 offer to buy the Canadian miner, but says he is open to talking about other possible deals once the company completes its own plan to split its business.
Teck chairman emeritus Norman Keevil says Glencore91裸聊视频檚 proposal is the wrong one, at the wrong time.
Teck91裸聊视频檚 board has rejected Glencore91裸聊视频檚 unsolicited takeover offer that would see shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets.
Instead, the company is pursuing a plan it announced in February to split up its metal and steelmaking coal businesses into two companies, Teck Metals and Elk Valley Resources. The proposal will be voted on by shareholders later this month.
Keevil says he would support a transaction 91裸聊视频� whether it be an operating partnership, merger, acquisition, or sale 91裸聊视频� with the right partner, on the right terms for Teck Metals after the separation takes place.
Teck is controlled by the Keevil family, which owns the company91裸聊视频檚 class A shares together with Japanese company Sumitomo.
The hostile takeover of Canada91裸聊视频檚 largest diversified mining company by a foreign entity would weaken this country91裸聊视频檚 chances of becoming a leader in critical minerals, according to industry watchers.
Critics of the recent unsolicited proposal by Swiss commodities giant Glencore to buy Vancouver-based Teck say such a transaction would mean a 91裸聊视频渉ollowing out91裸聊视频� of Canada91裸聊视频檚 mining industry at a time when the sector could be poised for a boom.
W. Scott Dunbar, head of the mining engineering department at the University of British Columbia, said he believes federal politicians should be concerned at the prospect of Teck 91裸聊视频� which has its roots in the 19th century and was known as Teck Cominco until 2008 91裸聊视频� being sold to a foreign entity.
91裸聊视频淭here should be concern, if the government recognizes the loss. I91裸聊视频檓 not sure they do,91裸聊视频� said Dunbar in an interview. 91裸聊视频淚 don91裸聊视频檛 know if they91裸聊视频檝e connected the dots there.91裸聊视频�
As part of its overall climate plan, the federal government has committed to a national critical minerals strategy 91裸聊视频� calling the exploration, production and processing of minerals including lithium, nickel, cobalt and zinc a 91裸聊视频済enerational opportunity91裸聊视频� for Canada.
Dunbar said while there is certainly potential there, without at least a few major domestic players Canada is unlikely to have a shot at being a global leader in the critical minerals space.
91裸聊视频淚f you haven91裸聊视频檛 got a well-developed mining industry, it won91裸聊视频檛 happen,91裸聊视频� Dunbar said.
91裸聊视频淚 think a company like Teck is the right size to promote that kind of thing, and help it along. I just think a big mining company like Glencore wouldn91裸聊视频檛 touch it.91裸聊视频�
Teck, which has a market capitalization of $25 billion, is keen to expand its copper and zinc production to meet growing global demand for these metals, both of which are used in the production of electric vehicles and are considered to be key resources for the coming energy transition.
Teck Metals91裸聊视频� flagship project would be Teck91裸聊视频檚 QB2 copper mine in Chile, which is just wrapping up construction and commissioning and is expected to reach full production later this year. But Dunbar pointed out Teck also has critical minerals projects in the pipeline in Canada, such as Galore Creek in northwest B.C., which is considered one of the world91裸聊视频檚 largest undeveloped deposits of copper, gold and silver.
91裸聊视频淎 real benefit to Canada will come, if Teck is going to develop its metal deposits,91裸聊视频� he said.
The Canadian mining sector last went through a round of consolidation about 15 years ago, when a number of domestic companies were swallowed up by international giants. In 2006, nickel miner Inco was bought by Brazil91裸聊视频檚 Vale, and another Canadian nickel company, Falconbridge, was bought by Switzerland91裸聊视频檚 Xstrata (now part of Glencore).
Canada91裸聊视频檚 largest aluminum producer, Alcan, was bought by Australia91裸聊视频檚 Rio Tinto in 2007.
91裸聊视频�(Those mergers) really hollowed out the Canadian mining industry, and some of it was not a positive for the Canadian economy,91裸聊视频� said economist and former Scotiabank executive Patricia Mohr in an interview.
91裸聊视频淎nd it91裸聊视频檚 in that regard that I do think Teck is one of the last big mining ventures that we do have that is controlled by Canadians. And I do think it matters.91裸聊视频�
Mohr said she considers Teck to be a 91裸聊视频淐anadian champion91裸聊视频� for the mining sector, adding the company91裸聊视频檚 strong local presence in Vancouver and partnerships with the University of British Columbia has helped in the development of a talented workforce.
91裸聊视频淚 think that having the head office in Vancouver is very supportive to the mining industry in Canada,91裸聊视频� she said.
91裸聊视频淎 huge number of geologists live in Vancouver because of it.91裸聊视频�
Candace MacGibbon, who was CEO of INV Metals Inc. until its acquisition by Dundee Precious Metals Corp. in 2021, said when it comes to Teck and Glencore, there is an emotional element to the way some industry insiders are reacting.
91裸聊视频淲e have a sentimental attachment to our mining industry, those of us who have worked in it for decades, and we would be sad to see it go to a multinational,91裸聊视频� she said.
MacGibbon said while there can be real benefits to consolidation for certain Canadian companies, including access to much-needed capital, too many foreign takeovers risk weakening the sector.
91裸聊视频淚f we see a prolonged period of consolidation, where our companies are the hunted and not the hunter, we risk losing the depth of leadership and talent that allows us to boast we91裸聊视频檙e the dominant leader on the world stage,91裸聊视频� she said.
91裸聊视频擜manda Stephenson, The Canadian Press
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