The inventory posted intraday positive aspects of greater than 5%.
Teck introduced the strikes Thursday after Canada’s federal authorities cleared the best way for Glencore’s $6.9 billion acquisition of its coal belongings. The transaction underscores the corporate’s pivot towards metals that shall be vital for the power transition, comparable to copper. The completion of the deal marks a brand new period for Teck, mentioned chief govt officer Jonathan Worth.
The proceeds from the deal may even be used to fund Teck’s suite of copper tasks. The corporate is pushing forward on an extension at its Highland Valley copper mine in Canada, whereas advancing early-stage tasks in Mexico and Peru. It’s additionally ending building on a significant extension to its flagship Quebrada Blanca mine in Chile, which is anticipated to double the agency’s general copper manufacturing.
The estimated capital value for these tasks is between $3.3 billion and $3.6 billion, Teck mentioned.
The deal provides Teck a pathway to extend copper manufacturing by an additional 30% as early as 2028, Worth mentioned in a press release.
“This transaction will allow us to cut back debt and retain important money to fund our near-term metals development and preserve a resilient stability sheet, whereas additionally offering a major return of money to our shareholders,” mentioned Worth.
(By Jacob Lorinc)