Glencore Buys Canada's Teck, Boosts Role in Steel Industry

Researched by Industrial Info Resources (Sugar Land, Texas)--Coal's status as an energy asset may be waning, but global corporations are investing heavily in its steelmaking value. Earlier this week, Glencore plc (Baar, Switzerland) put down US$6.9 billion to acquire a 77% stake in Teck Resources Limited's (NYSE:TECK) (Vancouver, British Columbia) Canadian coal assets, which it plans to merge with its own coal business and spin off into a separate entity within two years. Nippon Steel (Tokyo, Japan) and POSCO (Pohang, South Korea) will own the remaining stake. Industrial Info is tracking nearly US$18 billion worth of active and planned projects from Glencore worldwide, including more than US$3.8 billion in the U.S. and Canada, and nearly US$500 million worth of coal projects from Teck.

Click on the image at right for a graph detailing Teck's active and planned projects, by type.

Among the most important assets to be acquired by Glencore are Teck's four major coal mines in British Columbia: the Fording River and Green Hills mines near Elkford, and the Elkview and Line Creek mines near Sparwood. Teck is at work on additions and expansions at each facility:

• At Fording River, Teck is preparing to upgrade and rebuild its fleet of haul trucks and is considering an expansion that would sustain operation at the current 10 million-ton-per-year production level for several decades. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can read detailed reports on the haul truck and expansion projects, and read a detailed plant profile.
• At Green Hills, Teck began construction on a water treatment plant addition in March, which it expects to wrap up in second-quarter 2024, and is preparing to upgrade and rebuild its fleet of haul trucks. Subscribers can read detailed reports on the water treatment plant and haul trucks, and read a detailed plant profile.
• At Line Creek and Elkview, Teck expects to kick off its haul truck upgrades in second-quarter 2024, earlier than the same programs at Fording River and Green Hills, with completion expected in second-quarter 2026 and second-quarter 2027, respectively. Subscribers can read detailed reports on the Line Creek and Elkview haul truck projects, and read detailed profiles of the Line Creek and Elkview mines.

Subscribers can click here for a full list of coal-mining projects from Teck, including planned maintenance-related work.

In addition to these four mines, Glenore will acquire Teck's 46% interest in Neptune Bulk Terminals Limited in North Vancouver, British Columbia. Canpotex Limited, a joint venture between The Mosaic Company (NYSE:MOS) (Tampa, Florida) and Nutrien (NYSE:NTR) (Saskatoon, Saskatchewan), will continue to own 54% of Neptune. Subscribers can read more in a detailed plant profile.

Glencore's own mining projects in Canada include its massive, US$1.3 billion copper and nickel mine in Onaping, Ontario, which started construction in 2018 and is set to wrap up by the end of this year. Developed in response to declining production at Glencore's Fraser and Nickel Rim mines in Ontario, the Onaping facility is expected to produce 1.2 million tons per year of ores, which will be shipped to the company's Strathcona Mill to produce 20,000 tons per year of nickel and 9,000 tons per year of copper. Subscribers can read more in a detailed project report.

Copper and nickel are crucial components in lithium-ion batteries, with the latter providing high-energy density for this crucial ingredient in the global energy transition. Nickel demand is driving another major Glenore project, the US$287.7 million life extension project at its Raglan Nickel Mine and Concentrator near Kangiqsujuaq, Quebec. Glencore wants to continue feeding its nearby 1.5 million-ton-per-year processing plant by maintaining Raglan's production capacity of 40,000 tons per year of nickel concentrate from 2021 to 2035. Subscribers can read more in a detailed project report.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for active and planned projects from Glencore.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).