Teck Resources to separate steelmaking coal division
Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) has announced a business reorganisation, which will separate the company into two independent publicly listed entities: Teck Metals Corp. (Teck Metals) and Elk Valley Resources Ltd. (EVR).
The separation aims to create two world-class resource companies, each with a unique value proposition and different commodity fundamentals, giving investors a choice for allocating investments. Teck Metals will focus on growth, with low-cost base metals production, a top-tier copper development portfolio, and a disciplined capital returns policy. On the other hand, EVR will be a high-margin Canadian steelmaking coal producer that generates long-term cash and provides cash returns to shareholders, with significant equity value accretion potential. Both companies will uphold strong environmental and social performance standards.
“This transformative transaction creates two strong, sustainable, world-class mining companies committed to responsibly providing essential resources the world needs,” said Jonathan Price, CEO, Teck. “Both Teck Metals and EVR have high-quality operating assets and strong financial foundations, with talented and dedicated employees, committed to ensuring safe and responsible operations. The transaction simplifies the portfolio of each company, allowing for strategic and financial focus and the ability to pursue tailored capital allocation strategies. It provides investors with choice in response to the evolving investment landscape, and establishes a pathway to full financial separation of the two companies over time.”