Key Takeaways
- Teck Resources Limited and Anglo American plc have received regulatory approval from the Government of Canada for their merger of equals.
- The merged company, Anglo Teck, will be headquartered in Vancouver, Canada, and will spend at least C$4.5 billion in Canada within 5 years.
- Anglo Teck will proceed with the Highland Valley Copper Mine Life Extension project, enhance critical minerals processing capacity at Trail, and advance the development of the Galore Creek and Schaft Creek copper projects.
- The company will also maintain and enhance existing commitments to Indigenous governments, communities, conservation, and other similar initiatives.
- Anglo Teck will have its primary listing on the LSE, retaining FTSE UK index inclusion, as well as listings on the JSE, TSX, and NYSE.
Introduction to the Merger
The merger between Teck Resources Limited and Anglo American plc has been approved by the Government of Canada under the Investment Canada Act. This merger of equals will create a new global critical minerals champion headquartered in Canada, with the goal of providing exceptional and enduring benefits for the country. The merged company, Anglo Teck, will be a significant investment in Canada, its people, and its natural resources. The company will be committed to preserving and building on the proud heritage of both Teck and Anglo American, while also driving economic and wider benefits associated with a thriving mining ecosystem in British Columbia and Canada as a whole.
Commitments and Investments
Anglo Teck has agreed to a set of binding commitments under the Investment Canada Act, including spending at least C$4.5 billion in Canada within 5 years. This will enable the company to spend a total of at least C$10 billion in Canada over 15 years. The commitments also include proceeding with the Highland Valley Copper Mine Life Extension project, enhancing critical minerals processing capacity at Trail, and advancing the development of the Galore Creek and Schaft Creek copper projects. Additionally, Anglo Teck will maintain and enhance existing commitments to Indigenous governments, communities, conservation, and other similar initiatives, including contributing at least C$200 million to such initiatives.
Leadership and Structure
The merged company will have its global headquarters in Canada, with a significant majority of its senior management based in the country. The CEO, Deputy CEO, and CFO will have their principal office and reside primarily in Canada. A substantial proportion of Anglo Teck’s board of directors will be Canadian, comprising Anglo Teck executive directors residing primarily in Canada. The company will also have a listing on the TSX, subject to approval, and will seek TSX index inclusion.
Benefits for Canada
The formation of Anglo Teck is expected to provide exceptional and enduring benefits for Canada, including driving new economic activity and job creation. The company’s commitment to investing in Canada and its natural resources will help to further elevate Canada’s role and impact on the global critical minerals stage. Anglo Teck will also be committed to respecting indigenous and community rights, honoring all existing agreements in Canada with communities, Indigenous governments, and labor unions.
Forward-Looking Statements
The news release contains certain forward-looking information and forward-looking statements, which are based on the information available at the time and are subject to risks and uncertainties that could cause actual results to vary materially. The company assumes no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks, assumptions, and uncertainties associated with these forward-looking statements can be found in the Circular in respect of the Merger filed under Teck’s profile on SEDAR+ and on EDGAR.
Conclusion
The merger between Teck Resources Limited and Anglo American plc has the potential to create a significant and enduring benefit for Canada, its people, and its natural resources. The formation of Anglo Teck will provide a new global critical minerals champion headquartered in Canada, with a commitment to investing in the country and its natural resources. The company’s binding commitments under the Investment Canada Act will ensure that Anglo Teck spends at least C$4.5 billion in Canada within 5 years, proceeding with various projects and initiatives that will drive economic and wider benefits associated with a thriving mining ecosystem in British Columbia and Canada as a whole.
