Elk Valley Resources: Teck's Coal Business Sale

Elk Valley Resources
Elk Valley ResourcesImage Source: Teck Resources


Teck Resources concluded the partial sale of its steelmaking coal business, Elk Valley Resources, to Nippon Steel Corporation and POSCO. NSC secured a 20% stake by exchanging its prior interest and paying $1.7 billion, while POSCO exchanged its interests for a 3% stake. The remaining 77% sale to Glencore PLC is set for the third quarter of 2024, pending regulatory nods.



Teck Resources Limited, a Vancouver-based company, has successfully finalized the partial divestment of its steelmaking coal business, Elk Valley Resources (EVR). This deal marks the closure of a transaction involving minority interest sales to Nippon Steel Corporation (NSC) and POSCO.

Nippon Steel Corporation secured a 20% stake in EVR through a strategic exchange. In return for its previous 2.5% interest in Elkview Operations, NSC paid Teck $1.3 billion in cash upfront, along with an additional $0.4 billion to be disbursed subsequently from EVR's cash flows. On the other hand, POSCO, by swapping its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture, has secured a 3% interest in EVR.

The completion of the sale for the remaining 77% interest in EVR to Glencore PLC is anticipated in the third quarter of 2024. This impending transaction is contingent on meeting standard conditions, including approvals mandated by the Investment Canada Act and competition authorizations in various jurisdictions.

Teck's move to divest part of its coal business showcases a strategic shift in its portfolio. The company's willingness to engage with key stakeholders in the industry, including NSC, POSCO, and the impending Glencore PLC transaction, reflects Teck's commitment to optimizing its operations and focusing on growth avenues aligned with evolving market dynamics.


Teck Resources' successful partial sale of its steelmaking coal business to NSC and POSCO demonstrates the company's proactive approach in reshaping its portfolio. The strategic divestment aligns with Teck's pursuit of optimizing its business operations and consolidating its resources to capitalize on emerging opportunities in the evolving market landscape.

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