Teck Resources (TSX:TECK.B, NYSE: TECK) has completed the partial sale of its B.C. steelmaking coal mines to Japan’s Nippon Steel Corp. and South Korean steel maker, POSCO.
Teck is getting out of the metallurgical coal business altogether.
In November, the B.C. mining company agreed to sell its B.C. steelmaking coal mines – collectively called Elk Valley Resources (EVR) -- with Switzerland’s Glencore plc (LSE:GLEN) to take 77 per cent for $9 billion, and Nippon Steel and POSCO to buy the remaining 23 per cent.
Today, Teck announced it had closed the Nippon and POSCO portions of the divestiture. Both Nippon and POSCO already owned stakes in Teck’s steelmaking coal mines.
Nippon Steel has acquired 20 per cent of EVR in exchange for US$1.7 billion and its prior 2.5 per cent shares of the Elkview operations.
POSCO, meanwhile, has swapped its 2.5 per cent share of the Elkview Operations overall, and its 20 per cent share in the Greenhills joint venture, for a 3 per cent share of EVR.
The sale of the remaining 77 per cent of EVR to Glencore must still be approved by the federal government and is not expected to close until the third quarter of 2024.
