Teck Resources Ltd. TECK-B-T says it has closed its previously announced deal to sell minority interests in its steelmaking coal business to Japan’s Nippon Steel Corp. and South Korean steelmaker Posco.
The deal sees Nippon Steel acquire a 20 per cent stake in Teck’s coal business, known as Elk Valley Resources, in exchange for its prior 2.5 per cent interest in one of Teck’s coal operations and US$1.7 billion in cash.
Posco swapped its interest in a pair of Teck’s coal operations for a three per cent stake in the overall steelmaking coal operation.
The transactions are part of a broader deal announced by the Vancouver-based miner in November that will also see international giant Glencore pay US$6.9 billion for a 77 per cent stake in the company’s coal business.
Teck says the Glencore transaction remains subject to regulatory review and is expected to occur in the third quarter of 2024.
Following the closure of that deal, Teck will no longer have any exposure to coal, freeing the company up to focus instead on expanding its copper and zinc production to meet growing global demand for these metals.