The controlling shareholder of Teck Resources Ltd. rejected GlencoreB次元官网网址檚 offer to buy the Canadian miner, but says he is open to talking about other possible deals once the company completes its own plan to split its business.

Teck chairman emeritus Norman Keevil says GlencoreB次元官网网址檚 proposal is the wrong one, at the wrong time.

TeckB次元官网网址檚 board has rejected GlencoreB次元官网网址檚 unsolicited takeover offer that would see shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets.

Instead, the company is pursuing a plan it announced in February to split up its metal and steelmaking coal businesses into two companies, Teck Metals and Elk Valley Resources. The proposal will be voted on by shareholders later this month.

Keevil says he would support a transaction B次元官网网址� whether it be an operating partnership, merger, acquisition, or sale B次元官网网址� with the right partner, on the right terms for Teck Metals after the separation takes place.

Teck is controlled by the Keevil family, which owns the companyB次元官网网址檚 class A shares together with Japanese company Sumitomo.

The hostile takeover of CanadaB次元官网网址檚 largest diversified mining company by a foreign entity would weaken this countryB次元官网网址檚 chances of becoming a leader in critical minerals, according to industry watchers.

Critics of the recent unsolicited proposal by Swiss commodities giant Glencore to buy Vancouver-based Teck say such a transaction would mean a B次元官网网址渉ollowing outB次元官网网址� of CanadaB次元官网网址檚 mining industry at a time when the sector could be poised for a boom.

W. Scott Dunbar, head of the mining engineering department at the University of British Columbia, said he believes federal politicians should be concerned at the prospect of Teck B次元官网网址� which has its roots in the 19th century and was known as Teck Cominco until 2008 B次元官网网址� being sold to a foreign entity.

B次元官网网址淭here should be concern, if the government recognizes the loss. IB次元官网网址檓 not sure they do,B次元官网网址� said Dunbar in an interview. B次元官网网址淚 donB次元官网网址檛 know if theyB次元官网网址檝e connected the dots there.B次元官网网址�

As part of its overall climate plan, the federal government has committed to a national critical minerals strategy B次元官网网址� calling the exploration, production and processing of minerals including lithium, nickel, cobalt and zinc a B次元官网网址済enerational opportunityB次元官网网址� for Canada.

Dunbar said while there is certainly potential there, without at least a few major domestic players Canada is unlikely to have a shot at being a global leader in the critical minerals space.

B次元官网网址淚f you havenB次元官网网址檛 got a well-developed mining industry, it wonB次元官网网址檛 happen,B次元官网网址� Dunbar said.

B次元官网网址淚 think a company like Teck is the right size to promote that kind of thing, and help it along. I just think a big mining company like Glencore wouldnB次元官网网址檛 touch it.B次元官网网址�

Teck, which has a market capitalization of $25 billion, is keen to expand its copper and zinc production to meet growing global demand for these metals, both of which are used in the production of electric vehicles and are considered to be key resources for the coming energy transition.

Teck MetalsB次元官网网址� flagship project would be TeckB次元官网网址檚 QB2 copper mine in Chile, which is just wrapping up construction and commissioning and is expected to reach full production later this year. But Dunbar pointed out Teck also has critical minerals projects in the pipeline in Canada, such as Galore Creek in northwest B.C., which is considered one of the worldB次元官网网址檚 largest undeveloped deposits of copper, gold and silver.

B次元官网网址淎 real benefit to Canada will come, if Teck is going to develop its metal deposits,B次元官网网址� he said.

The Canadian mining sector last went through a round of consolidation about 15 years ago, when a number of domestic companies were swallowed up by international giants. In 2006, nickel miner Inco was bought by BrazilB次元官网网址檚 Vale, and another Canadian nickel company, Falconbridge, was bought by SwitzerlandB次元官网网址檚 Xstrata (now part of Glencore).

CanadaB次元官网网址檚 largest aluminum producer, Alcan, was bought by AustraliaB次元官网网址檚 Rio Tinto in 2007.

B次元官网网址�(Those mergers) really hollowed out the Canadian mining industry, and some of it was not a positive for the Canadian economy,B次元官网网址� said economist and former Scotiabank executive Patricia Mohr in an interview.

B次元官网网址淎nd itB次元官网网址檚 in that regard that I do think Teck is one of the last big mining ventures that we do have that is controlled by Canadians. And I do think it matters.B次元官网网址�

Mohr said she considers Teck to be a B次元官网网址淐anadian championB次元官网网址� for the mining sector, adding the companyB次元官网网址檚 strong local presence in Vancouver and partnerships with the University of British Columbia has helped in the development of a talented workforce.

B次元官网网址淚 think that having the head office in Vancouver is very supportive to the mining industry in Canada,B次元官网网址� she said.

B次元官网网址淎 huge number of geologists live in Vancouver because of it.B次元官网网址�

Candace MacGibbon, who was CEO of INV Metals Inc. until its acquisition by Dundee Precious Metals Corp. in 2021, said when it comes to Teck and Glencore, there is an emotional element to the way some industry insiders are reacting.

B次元官网网址淲e have a sentimental attachment to our mining industry, those of us who have worked in it for decades, and we would be sad to see it go to a multinational,B次元官网网址� she said.

MacGibbon said while there can be real benefits to consolidation for certain Canadian companies, including access to much-needed capital, too many foreign takeovers risk weakening the sector.

B次元官网网址淚f we see a prolonged period of consolidation, where our companies are the hunted and not the hunter, we risk losing the depth of leadership and talent that allows us to boast weB次元官网网址檙e the dominant leader on the world stage,B次元官网网址� she said.

B次元官网网址擜manda Stephenson, The Canadian Press

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