Teck Responds to Market Rumours
At the request of the Investment Industry Regulatory Organization of Canada and the New York Stock Exchange, Teck Resources Limited today confirmed that it is evaluating alternatives for its steelmaking coal business, including the possible spin-out of an interest in that business to its shareholders. Any transaction would be expected to create value for Teck’s shareholders and support continued benefits for communities and Indigenous Peoples in the areas where Teck operates.
No decision has been reached to proceed with a transaction and there can be no assurances that any transaction will eventuate. Teck does not intend to make any additional comments regarding this matter unless and until a formal decision has been reached.
In 2022 it was reported that Teck was exploring the sale of a minority stake in its metallurgical coal business as it seeks to take advantage of surging prices for the commodity. The business media stated that approached parties including smaller rival Arch Resources Inc. to gauge their interest in buying a stake of 10 per cent. They also stated that Teck’s coal business was valued at about US$8 billion in 2022 and rising demand for the commodity could push that figure higher.
Arch Resources, previously known as Arch Coal, is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Resources is the second-largest supplier of coal in the United States, behind Peabody Energy.
Coal mining in the Elk Valley has been dynamic from it’s beginning, change is the only constant.