Statement from Dr. Norman Keevil
- Apr
- 16
Teck Resources Limited today issued a statement on behalf of Teck Chairman Emeritus Dr. Norman B. Keevil:
“As there has been much media commentary regarding my views on the future of Teck, I would like to provide a clear statement of my perspective.
My colleagues and I are proud of what we achieved through 30 years of building Teck, growing the company 500-fold from a $25 million market cap to $12.6 billion, with double-digit compounded growth in shareholder value, and continuing growth in recent years to $25 billion today.
I am confident that Jonathan Price and his team have every chance of duplicating that strong growth phase again, perhaps doing even better. Teck today has the producing assets, a series of good potential development projects in copper and other important metals, the people, the financial strength, and the focus to do it.
There are numerous mining industry parties who have their eyes on Teck and would be interested in partnering or investing in Teck Metals after it separates its base metals and steelmaking coal businesses.
I would support a transaction – whether it be an operating partnership, merger, acquisition, or sale – with the right partner, on the right terms for Teck Metals after separation. Based on my decades of experience building a successful mining company, I believe that pursuing a sale or merger transaction now would rob our shareholders of significant post-separation value.
Glencore’s proposal is the wrong one, as well as at the wrong time. Ivan Glasenberg is an interesting guy and a smart man, and his timing is certainly good for them, but not for Teck or our shareholders. I fully agree with Teck’s Board that there is no deal to be done pre-separation with Glencore or any other party.
For more background on the Teck story, I refer to my 2017 book Never Rest on Your Ores – Building a Mining Company, One Stone at a Time. The publisher, McGill Queens University Press, has just released an updated, second edition yesterday, April 15, as part of its long-planned Spring Collection.
Shareholders and proxy advisers interested in how the company was built may enjoy reading some of it. The new chapters 42 and 43 update some of the industry and Teck stories respectively, during the China super-cycle, and through to the worldwide disruption of the Covid-19 pandemic. The chart on page 434 tells the rest, showing Teck’s steady growth upwards in spite of the inevitable commodity price cycles. The underlying reason – building or acquiring 17 new mines over 30 years and doing it well.
The title and subtitles tell much. A mining company without ore reserves is an oxymoron, and our previous best growth years resulted from a steady process of adding reserves over many years, one new mine at a time. That describes the exciting future that Jonathan, his team, and I see for Teck as it goes forward.”
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Elk Valley Coal Links
- Centerpoint Resources Inc. A mine exploration and development company that owns Bingay Coal.
- City of Fernie The cultural and activity centre of the Elk Valley.
- Crowsnest Pass Coal Mining Ltd. Potential for a significant underground mine operation producing high quality coking coal.
- District of Elkford Founded in 1971 as a home for miners working at Fording Coal.
- District of Sparwood Sparwood, BC is yours and mine to discover!
- Elk River Alliance The Elk River Alliance has spent over a decade monitoring the Elk River Watershed
- Elk Valley Resources Elk Valley Resources (EVR) operates four steelmaking coal mines in the Elk Valley.
- Fernie.com Everything you need to know about Fernie BC.
- Glencore Owns a 77% interest in Elk Valley Resources.
- Grizzly Discoveries Grizzly is a Canadian exploration company exploring for gold and base metal deposits.
- Jameson Resources Ltd. Coal Mountain Coking Coal in Alexander Creek.
- Ktunaxa Nation Working together, managing our lands and resources, within a self-sufficient, self-governing Nation.
- Mining Association of British Columbia Represents the needs and interests of coal, metal, industrial mineral companies and smelters.
- Nippon Steel Japan’s largest steelmaker with a 20% interest in Elk Valley Resources.
- North Coal Ltd. Focused on the exploration and development of the Michel Creek Coking Coal Project.
- Pacific American Coal Ltd. Identified a 257 million tonne JORC resource at its Elko Coking Coal Project
- POSCO A South Korean steel-making company headquartered in Pohang with 3% interest in EVR.
- Teck Resources Ltd. Canada’s Largest Diversified Resource Company.
- United Steelworkers Local 9346 The Trade Union for the hourly employees at Teck Coal Ltd. – Elkview Operations
- Wildsight Working to protect wildlife, water and wild places in Canada’s Columbia and Rocky Mountain regions.