Jonathan Price, Teck Resources CEO, at the Highland Valley Copper Mine near Logan Lake, B.C., last week.DARRYL DYCK/The Canadian Press
Teck Resources Ltd. TECK-B-T is pledging to build a critical-minerals refining powerhouse in Southern British Columbia if the federal government approves its proposed merger with Anglo American PLC NGLOY.
Vancouver-based Teck, the country’s largest base-metal miner, and Anglo will boost the combined company’s capacity to produce zinc, antimony and germanium. If Ottawa blesses their union, the company expects to start refining copper and gallium at its facility in Trail, B.C., chief executive officer Jonathan Price said in an interview on Monday. He said the copper refinery would be the first in Western Canada.
The pledge is part of a commitment with Anglo to spend $4.5-billion on expanding Canadian operations over the next five years. The combined companies plan to invest up to $750-million to boost production of germanium and gallium, which are used in semiconductors and solar cells, and other strategic minerals.
“This is a unique opportunity to build a Canadian powerhouse in critical minerals,” Mr. Price said. The combined entity would rank among the world’s top five copper producers.
Teck and Anglo’s commitment to increased domestic production of strategic metals fits the federal government’s shift to increased self-reliance in Canadian manufacturing and defence, Mr. Price said.
The two companies produce vital raw materials for technology manufacturers. China dominates production of most of these critical minerals.
The merger requires the federal Industry Minister’s approval. In 2024, Ottawa tightened the rules around acquisitions of mining companies to include both a net economic benefit to the country and new criteria based on national security.
On Monday, The Globe and Mail reported Prime Minister Mark Carney told London-based Anglo it would need to move its head office to Canada to win approval for the Teck merger. The two companies subsequently announced plans to put their headquarters in Vancouver. Mr. Price declined to comment on negotiations with federal politicians.
On Tuesday, Industry Minister Mélanie Joly told The Globe and Mail that Teck and Anglo must go further to prove the deal benefits Canada.
“I think right now that it’s not enough, and also we need to think about longer term, and how can we make sure that ultimately we create jobs, but we have a strong headquarters, not only now, but also for the next decades,” she said. “We need to have further conversations with the companies.”
Ms. Joly said that she will be meeting with the CEOs of both Anglo and Teck next week. The price of Teck shares dropped 4 per cent on Tuesday after the minister’s remarks, closing at $55.42 on the Toronto Stock Exchange.
To further sweeten the deal for domestic politicians, Mr. Price said Teck and Anglo will commit $750-million to development work for two potential copper mines in northwestern B.C., the Galore Creek and Schaft Creek projects. The money is earmarked for exploration, feasibility studies and permitting. Both mines would cost billions of dollars to bring into production.
“Combining forces with Anglo not only boosts our financial strength, it adds to our technical skills and our capability to deliver projects,” Mr. Price said.
The Teck CEO said Anglo has committed to running the combined companies from Vancouver “in perpetuity.” Current Anglo CEO Duncan Wanblad will be chief executive of the combined companies, while Mr. Price will serve as deputy CEO. Mr. Price said Mr. Wanblad and his wife are already house-hunting in Vancouver.
In a move that counters President Donald Trump’s push to bring manufacturing jobs to the United States, Mr. Price said ramping up refining at the Trail facility would allow the company to increase the amount of material it refines from Teck’s Red Dog project in Alaska, one of the world’s largest zinc mines.
“We can change the narrative around mining in this country by taking raw material from the U.S., adding value by refining it in B.C., then selling to the world,” Mr. Price said.
As part of their charm offensive with the federal government and investors, Teck and Anglo promised to spend at least $300-million over the next five years on critical-mineral exploration in Canada. Mr. Price said that support will include investments alongside junior mining companies.
Teck and Anglo have earmarked an additional $100-million toward critical-minerals skills training and research. The companies plan to increase their involvement in university and community college co-op programs, along with job training and business partnerships targeted at Indigenous communities.
In July, Teck announced it would invest up to $2.4-billion in B.C.’s Highland Valley copper mine to extend the life of the property by 18 years, to 2046. The companies included that spending in their merger pledge to invest $4.5-billion in Canada.
Demand for copper is expected to soar by more than 40 per cent over the next 15 years, according to the International Energy Agency.
Since being named CEO at Teck in 2022, Mr. Price has shifted the company’s focus to copper and other critical metals. Teck exited an investment in the Alberta oil sands in 2022. In 2023, the company sold its steelmaking coal mines in Southern B.C. for US$7.3-billion to Glencore PLC and two Asian steelmakers.
Last week, Mr. Carney put two copper mines on the federal government’s list of five major projects that will be priorities under the Building Canada Act. They are Saskatchewan’s Foran McIlvenna Bay copper mine project, operated by Foran Mining Corp., and the Red Chris Copper and Gold Mine expansion in B.C., owned by Newmont Corp. and Imperial Metals Corp.
With a report from Stephanie Levitz