According to a joint statement released by Switzerland-headquartered international commodities producer and trader Glencore and Canadian mining firm Teck Resources, the Canadian government has approved the transfer of the remaining 77 percent equity in Teck Resources’ coal subsidiary Elk Valley Resources to Glencore for $6.9 billion.
Glencore has welcomed the positive development, stating that the acquisition in question will further strengthen the quality of its portfolio and increase its ability to provide high quality steelmaking coal. The transaction is expected to be completed on July 11.
As SteelOrbis reported previously, Indian steelmaker JSW Steel Limited had been among the companies seeking to acquire the coking coal assets of Teck Resources. Along with Glencore, Japanese steel producer Nippon Steel had acquired a 20 percent stake and South Korea’s POSCO had picked up a three percent stake in Elk Valley Resources in exchange for its 2.5 percent existing interest in Elkview Operations and 20 percent existing stake in Greenhill ventures.