Glencore announces it has acquired the majority share of the Canadian Teck Resources in a $10.9 billion deal that may see the company's Australian coal assets 'demerged'.
Glencore is one of country's largest coal producers operating both of open cut and underground coal mines in NSW and Queensland with around 10,000 employees.
In the Hunter and Mid West region they operate 11 mines including Bulga, Integra, Mangoola, Ravensworth and Glendell and are joint owners with Yancoal of Hunter Valley Operations.
Under the deal Glencore has entered into a binding agreement with Teck Resources Limited, for the acquisition of a 77% effective interest in the entirety of Teck's steelmaking coal business, Elk Valley Resources. The remainder of the Teck share will he held by Nippon Steel and Posco.
Commenting on the transaction, Gary Nagle, CEO of Glencore, said "We are pleased to have reached agreement to acquire Teck's steelmaking coal operations in the Elk Valley. These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa.
"Glencore has high regard for the business that has been developed over many decades in British Columbia and looks forward to maintaining and enhancing its operational performance, environmental stewardship and social contribution.
"This transaction also deepens our longstanding commitment to Canada, supporting our position as one of the largest diversified miners and suppliers of critical minerals in Canada, in one of the world's leading mining jurisdictions."
It is being reported that the deal would allow Glecnore to eventually bundle its Queensland and NSW coal operations into a spin-off of a coal giant.
This is based outcome is based on the proposal earlier this year, where Glencore offered to buy Teck, merge its coal that with its own thermal coal business, then spin out the new coal behemoth on the New York Stock Exchange.
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