BRITISH COLUMBIA – Teck Resources Limited and Anglo American have announced they’ve reached an agreement to merge the two companies to form the Anglo Teck group, a global critical minerals and copper producer, headquartered in Canada.
Both companies believe the merger will be attractive for shareholders, as plans include offering investors over 70 percent exposure to copper.
Anglo Teck’s portfolio will six copper assets, alongside iron ore and zinc businesses. Anglo Teck will be one of the world’s largest copper producers, with major brownfield and greenfield copper development projects. It will also retain growth options, including in iron ore, zinc and crop nutrients.
Anglo Teck will also work with key stakeholders and partners in Collahuasi and Quebrada Blanca to build on Anglo American’s success with similar adjacency partnerships in Brazil and elsewhere in Chile.
Anglo Teck’s global headquarters will be located in Vancouver, with corporate offices in London and Johannesburg.
“We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long. Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth,” says Duncan Wanblad, CEO. “We have a unique opportunity to bring together two highly regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values. We are all committed to preserving and building on the proud heritages of both companies, both in Canada as Anglo Teck the combined company’s natural headquarters and in South Africa where our commitments to investment and national priorities endure.”
Jonathan Price, Chief Executive Officer of Teck, adds: “This merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America, and Southern Africa. It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality. This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders.”
Their copper production sites include Highland Valley Copper at Logan Lake, near Kamloops. Zinc production includes the fully integrated zinc and lead smelting and refining facilities at Trail Operations in B.C. Other development prospects include the Galore Creek and Schaft Creek projects in northwestern B.C.
Anglo Teck will continue to have exploration teams active across Canada, and plans to invest at least $300 million (over five years following completion) in critical mineral exploration and technology in Canada.
Anglo Teck will invest at least approximately $4.5 billion over five years in Canada, including in respect of the Highland Valley Copper Mine Life Extension, improving critical minerals processing capacity at Trail, advancing potential major new copper mines in northwestern B.C. It will also explore opportunities to add copper processing capacity at Trail and support the establishment of new critical minerals processing facilities in Canada
The CEO, Deputy CEO, CFO and a significant majority of the executive management team will be based in and reside in Canada, and a substantial proportion of Anglo Teck’s board of directors will be Canadian.
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