- Glencore will buy 77 per cent of Teck’s metallurgical coal division for $6.93bn
- Coal output will jump as company talks up long-term steel demand
Glencore (GLEN) will significantly boost its steelmaking coal output through a $6.9bn (£5.6bn) cash buyout of Teck Resources’ (US:TECK) Elk Valley business, which includes four mines and a stake in a port terminal. The deal, done alongside Nippon Steel and Posco from South Korea, comes months after the mining and trading company pushed for a reshuffle of its and Teck’s assets that would have seen the coal assets coupled and the base metals and trading divisions come together. Glencore will still split its business, the deal announcement said, but with a two-year pause to pay down debt.