Teck evaluates coal options, confirms possible spin-out
Diversified miner Teck Resources has confirmed that it is mulling a spin-out of an interest in its steelmaking coal business, as the company pursues growth in metals needed for the transition to a low carbon world.
At the request of the Investment Industry Regulatory Organization of Canada and the NYSE, Teck issued a statement on Thursday confirming that it is evaluating alternatives for its steelmaking coal business. This followed an earlier Bloomberg article, which states that announcement about the steelmaking coal operations in western Canada could be made as early as next week.
Teck stated that no decision had been reached to proceed with a transaction and that there could be no assurances that any transaction would eventuate.
Earlier this year, Teck also exited the oil sand business, with new CEO Jonathan Price stating that it was in line with a strategy of pursuing “industry leading copper growth” and to rebalance the group’s portfolio to low-carbon metals.
Price has said that the company will aim to be a more significant player in the copper industry, as growth is expected to be exponential owing to the clean energy transition.
Coal is a significant source of revenue for Teck, having accounted for about 29% of the total revenue in 2021.
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