Reaction from elected and union officials is pouring in to the proposed sale of Teck Resources Ltdsa国际传媒檚 coal assets to Glencore sa国际传媒� a Swiss-based mining giant sa国际传媒� that was announced on Tuesday (Nov. 14).
Sparwood Mayor David Wilks said he was sa国际传媒渘ot concernedsa国际传媒� given commitments that Glencore had made as part of the announcement, as Glencoresa国际传媒檚 successful bid for Tecksa国际传媒檚 coal assets followed an unsolicited and failed attempt to acquire the entirety of Teck Resources Ltd. earlier this year.
sa国际传媒淚tsa国际传媒檚 not our first rodeo, if you want to call it that, from the prospective of changing hands of the coal companies and it probably wonsa国际传媒檛 be the last,sa国际传媒� said Wilks. sa国际传媒淪o far, it sounds far better than what the first go-around was with Teck.sa国际传媒�
The four metallurgical (steel-making) coal mines in the Elk Valley serve as the bedrock of the East Kootenay economy, providing thousands of direct and indirect jobs for people and businesses in places like Elkford, Fernie, Sparwood, Cranbrook and beyond.
The US$9-billion sale would see Tecksa国际传媒檚 coal assets spun into Elk Valley Resources (EVR), through a 77 per cent majority stake to Glencore.
READ MORE:
Concurrently, Teck has agreed with Nippon Steel Corporation (NSC) that its 2.5 per cent interest in the Elkview Operations will be rolled into EVR, and that NSC will acquire a 20 per cent interest in EVR.
POSCO, a steel-making company based in South Korea, will exchange its 2.5 per cent interest in Elkview Operations and 20 per cent interest in Greenhills for a three per cent stake in EVR.
In terms of the effects on the Elk Valley, Glencore has made a number of commitments that would be honoured under EVRsa国际传媒檚 operations.
EVR will continue to operate in Canada with a head office in Vancouver, and regional offices in Calgary and Sparwood, which includes completion of a new building that just started construction.
EVR will also maintain significant employment levels in Canada, with no net reduction in the number of employees as a result of the transaction.
Other commitments include continuing to implement the Elk Valley Water Quality Plan, spending up to $150 million on research and development activities such as water quality treatment technologies, and honouring existing agreements with Indigenous Nations.
Fernie Mayor Nic Milligan said he is hopeful that the coal mines continue their sa国际传媒渟ustainable operationssa国际传媒� under Elk Valley Resources, support local communities and be valued community partners.
sa国际传媒淯ltimately, I am hopeful that the commitments made in the transaction will be commitments kept for the betterment and continued sustainability of our communities, and for the continued employment and ongoing benefit of all those who work directly for and who support the mining industry in the region,sa国际传媒� said Milligan.
sa国际传媒淚 look forward to working with Elk Valley Resources now and through the transaction to ensure a sustainable future for the Elk Valley.sa国际传媒�
Reaction from elsewhere was a bit more tepid.
The United Steekworkers (USW) union, on behalf of the four local unions representing 4,000 Teck employees, reserved support for the transaction and pledged to watch and participate in the review required by the federal government, as part of the regulatory process necessary to approve the sale.
sa国际传媒淲hile we see a number of good and broad commitments such as job retention, a Vancouver-based head office with offices in Sparwood and Calgary, investments in recycling, water quality, training, development and other community initiatives, the underlying concerns persist regarding Glencoresa国际传媒檚 role as a corporate entity and the absence of communication from the company to the union gives us pause to fully support the deal,sa国际传媒� said Scott Lunny, USW Western Canada director.
sa国际传媒淭hose issues were raised by Teck itself, previously, as well as others in Canada. We need to hear from Glencore directly, with enforceable commitments on the future of steelmaking operations in the Elk Valley, their treatment of the workforce and commitment to the communities.sa国际传媒�
Yaq虛it 蕯a路knuq獗sa国际传媒檌t (Tobacco Plains Indian Band) issued a news release, noting that the Nation is following the proposed sale sa国际传媒渨ith keen interestsa国际传媒� while noting that there is a path forward for sustainable mining in the Elk Valley that requires responsible practices and water management in ways that respect and protect all living things.
sa国际传媒淥ver the past few months our Nation has undertaken an intensive process of working with the Province of British Columbia and Teck Resources to find a new path forward for the future of mining in our ancestral lands (蕯akanuxunik虛蕯amakis),sa国际传媒� said Nasu蕯kin (chief) Heidi Gravelle. sa国际传媒淎t the core of this process has been the acknowledgement that our Nation is the Title holder and rightful voice of stewardship in the Elk Valley.
sa国际传媒淲e have strong expectations that these important discussions will continue with British Columbia, Teck and now Glencore.sa国际传媒�
While the terms of the proposed sale were announced on Nov. 14, there is a regulatory process that will take until next year to finalize the sale, if it meets the criteria under the Canada Investment Act.
Chrystia Freeland, Canadasa国际传媒檚 finance minister, said the proposed Teck sale is a sa国际传媒渟erious transaction,sa国际传媒� while speaking at a housing announcement in Toronto on Nov. 14.
sa国际传媒淲esa国际传媒檙e going to follow our regulatory processes carefully,sa国际传媒� said Freeland, adding that key issues are Canadian jobs and Canadian headquarters, environmental concerns and the rights of Indigenous peoples.sa国际传媒�
B.C. Mines Minister Josie Osborne echoed similar sentiments, in an emailed statement.
sa国际传媒淕lencore has made commitments around a headquarters in Vancouver, a regional office in Sparwood, and to working with First Nations,sa国际传媒� said Osborne. sa国际传媒淚f the sale is approved by the federal government, it is our expectation that they would meet those commitments and retain existing commitments to environmental stewardship and water quality sa国际传媒� working in alignment with our high standards on environmental regulations and collaboration with First Nations.
By divesting the coal assets, Teck Resources Ltd will refocus on its portfolio of copper growth projects, such as the Galore Creek project in northwest B.C. and extending the life of Highland Valley Copper west of Kamloops.
sa国际传媒淭his sale will ensure Teck is well-capitalized and able to realize value from our base metals business and deliver strong returns to our shareholders while maintaining a robust balance sheet,sa国际传媒� said Jonathan Price, president and CEO of Teck.
sa国际传媒淕lencore has made strong commitments that will create new benefits for Canada and the Elk Valley and ensure responsible stewardship of the steelmaking coal operations for the long term.sa国际传媒�
