The Canadian government has approved Glencore’s purchase of Teck’s coal division, Elk Valley Resources.
Back in November 2023, Teck agreed to sell its coal division for roughly $9.5 billion US.
They have already sold a 20 per cent interest to the Nippon Steel Corporation and a three per cent interest to South Korean-based POSCO.
Teck was waiting for approval for the final 77 per cent interest sale to Glencore.
The Canadian government has put some legally binding commitments in place that Glencore will have to follow.
Glencore will have to establish and maintain a Canadian head office in Vancouver and regional offices in Calgary and Sparwood for at least 10 years.
A majority of directors and at least six per cent of all executive and senior management roles need to be filled by Canadians for at least 10 years as well.
Kootenay East MLA Tom Shypitka was originally against the sale, but he said after talks with Glencore he believes they are acting in the area’s best interest.
“Sometimes your corporate partners are like family in the community. Teck has been unbelievable in our community with all kinds of philanthropy and donations,” he said.
“At first, when they came in I was a little defensive only because I felt like I was losing a family member. I’m happy to say I’ve had all those discussions with Glencore and they’ve said all the right things. My defensiveness has turned to optimism.”
Glencore has stated they will honour commitments that Teck made to local First Nations and will look for ways to increase First Nations’ participation.
Teck will be reinvesting a significant amount of the proceeds from the sale into its copper production.
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