Reports related to this article:
Project(s): View 5 related projects in PECWeb
Plant(s): View 5 related plants in PECWeb
Released June 13, 2023 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Glencore plc (Baar, Switzerland) has its eye on Teck Resources Limited's (NYSE:TECK) (Vancouver, British Columbia) coal assets, which it recently offered to buy as an alternative to a full merger of the two companies, according to The Wall Street Journal. Glencore still insists it would happily buy all of Teck for US$23 billion, but so far it has received a chilly response from the Canadian miner. However, Teck wants to split its steelmaking coal business from its base metals business and is considering several proposals from rival companies. Globally, Industrial Info is tracking more than US$21 billion worth of active projects from Teck and more than US$14 billion worth from Glencore.
Click on the image at right for a graph detailing Teck Resources' active projects, by project type.
Teck confirmed Monday that Glencore is one of several companies seeking to acquire its business for steelmaking coal, which also is called metallurgical coal. Glencore--which twice has seen Teck reject its proposal for a full merger--now says it is open to "de-merging" the two companies' combined coal and carbon-steel materials businesses into its own spinoff company.
Russ Mould, an analyst with AJ Bell (Manchester, England), told Seeking Alpha that the move indicates Glencore wants to separate coal from the rest of its business, as "there's a merry-go-round of coal assets in the industry, as companies don't want to be left holding what is seen as a dirty fuel."
Teck is seeking permits for a proposed expansion of its Fording River Coal Mine near Elkford, British Columbia, which would extend southward from the existing facilities to an area known as the Castle Mountain reserves. Teck says the expansion would allow it to sustain the current production level at Fording River, which is up to 10 million metric tons per year of steelmaking coal, for several decades. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more from a detailed project report.
The Fording River complex became a sensitive issue for Teck earlier this year, when British Columbia's Ministry of Environment slapped the company's Teck Coal Limited subsidiary with C$16 million (US$11.9 million) in fines for polluting waterways in the province's East Kootenay region, which sits on the southeastern border with Alberta. The ministry pointed to Teck's failure to have water-treatment facilities at Fording River ready by a required date to limit emissions of nitrate and selenium, according to CBC News.
Teck is in the process of strengthening the water-treatment facilities at three of its other coal mines in British Columbia: the Line Creek and Elkview mines in Sparwood, and the Greenhills mine in Elkford. The Line Creek and Greenhills projects are expected to wrap up later this year, while the Elkview project remains in its site preparation phase. Greenhills sits just south of the Fording River mining area. Subscribers can learn more from Industrial Info's detailed reports on the Line Creek, Elkview and Greenhills projects.
"Our steelmaking coal business is best-in-class, underpinned by an extensive reserve base with high margins, and it will be positioned to capitalize on the developing global supply gap from existing mine depletion and lack of new projects coming into production," said Jonathan Price, the chief executive officer of Teck, in the company's most recent earnings-related conference call. He also noted "that there is greater value and optionality in having a stand-alone pure-play metals business, separate from the steelmaking coal business."
Teck's non-coal mining operations are focused on some of the world's most in-demand materials, including copper, zinc and lead. The company is seeking permits for an expansion of its Red Dog Mine in northwestern Alaska, which is the world's second-largest zinc mine. Teck estimates two discoveries about 10 miles north of the existing mine, Aktigiruq and Anarraaq, jointly have estimated resources of as much as 170 million metric tons of zinc. Subscribers can learn more from Industrial Info's 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 global list of reports for active or proposed projects from Teck, and click here for a global list of reports for active or proposed 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).
Click on the image at right for a graph detailing Teck Resources' active projects, by project type.Teck confirmed Monday that Glencore is one of several companies seeking to acquire its business for steelmaking coal, which also is called metallurgical coal. Glencore--which twice has seen Teck reject its proposal for a full merger--now says it is open to "de-merging" the two companies' combined coal and carbon-steel materials businesses into its own spinoff company.
Russ Mould, an analyst with AJ Bell (Manchester, England), told Seeking Alpha that the move indicates Glencore wants to separate coal from the rest of its business, as "there's a merry-go-round of coal assets in the industry, as companies don't want to be left holding what is seen as a dirty fuel."
Teck is seeking permits for a proposed expansion of its Fording River Coal Mine near Elkford, British Columbia, which would extend southward from the existing facilities to an area known as the Castle Mountain reserves. Teck says the expansion would allow it to sustain the current production level at Fording River, which is up to 10 million metric tons per year of steelmaking coal, for several decades. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more from a detailed project report.
The Fording River complex became a sensitive issue for Teck earlier this year, when British Columbia's Ministry of Environment slapped the company's Teck Coal Limited subsidiary with C$16 million (US$11.9 million) in fines for polluting waterways in the province's East Kootenay region, which sits on the southeastern border with Alberta. The ministry pointed to Teck's failure to have water-treatment facilities at Fording River ready by a required date to limit emissions of nitrate and selenium, according to CBC News.
Teck is in the process of strengthening the water-treatment facilities at three of its other coal mines in British Columbia: the Line Creek and Elkview mines in Sparwood, and the Greenhills mine in Elkford. The Line Creek and Greenhills projects are expected to wrap up later this year, while the Elkview project remains in its site preparation phase. Greenhills sits just south of the Fording River mining area. Subscribers can learn more from Industrial Info's detailed reports on the Line Creek, Elkview and Greenhills projects.
"Our steelmaking coal business is best-in-class, underpinned by an extensive reserve base with high margins, and it will be positioned to capitalize on the developing global supply gap from existing mine depletion and lack of new projects coming into production," said Jonathan Price, the chief executive officer of Teck, in the company's most recent earnings-related conference call. He also noted "that there is greater value and optionality in having a stand-alone pure-play metals business, separate from the steelmaking coal business."
Teck's non-coal mining operations are focused on some of the world's most in-demand materials, including copper, zinc and lead. The company is seeking permits for an expansion of its Red Dog Mine in northwestern Alaska, which is the world's second-largest zinc mine. Teck estimates two discoveries about 10 miles north of the existing mine, Aktigiruq and Anarraaq, jointly have estimated resources of as much as 170 million metric tons of zinc. Subscribers can learn more from Industrial Info's 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 global list of reports for active or proposed projects from Teck, and click here for a global list of reports for active or proposed 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).
