Teck’s Sweeping Overhaul May Make It a Target for Larger Miners
- Teck Metals will hold a royalty on the coal spinoff company
- Canadian miner will focus on energy-transition metals
Rail cars loaded with coal near a Teck Resources Elkview Operations steelmaking coal mine in British Columbia.
Photographer: James MacDonald/BloombergTeck Resources Ltd. will spin off its steelmaking coal business and simplify its share structure in a sweeping overhaul that is likely to make the Canadian miner an attractive target for larger rivals.
Teck will split into two independent, publicly listed companies: Teck Metals Corp. will focus on metals needed in the clean-energy transition while Elk Valley Resources Ltd. will operate the coal assets. The coal business has an implied enterprise value of about C$11.5 billion ($8.6 billion), the firm said. Teck also plans to wind down the dual-class share structure under which Canada’s Keevil family controls the company, though the change will be over six years.