Teck Resources (TSX: TECK.A, TECK.B) (NYSE: TECK) has kissed coal goodbye after closing the sale of its minority stake in steelmaking coal operations to Japan’s Nippon Steel Corp. and South Korean steelmaker Posco.
Nippon Steel now has a 20% interest in Teck’s coal business, known as Elk Valley Resources. In exchange, the Japanese firm gave up its prior 2.5% stake in one of Teck’s coal operations and has paid $1.7 billion in cash.
Posco traded its interest in two of Teck’s coal operations for a 3% stake in the overall steelmaking coal business. The transactions are part of an umbrella deal inked with Glencore (LON: GLEN) in November 2023, which will see the Swiss miner and commodities trader pay $6.9 billion for for 77% of Elk Valley Resources.
The agreement with Glencore, which capped negotiations and takeover attempts initiated by the Baar-based firm, remains subject to regulatory review and is expected to close in the third quarter of 2024.
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