It’s a done deal.
Ottawa has signed off on the merger between Teck Resources Ltd. and Anglo American.
Teck chief executive Jonathan Price promises the deal will deliver billions in investment and drive new economic activity and job creation in other countries in addition to Canada.
“Canada and British Columbia are recognized world-wide as strong mining jurisdictions with critical minerals strategies focused on creating a positive environment to attract new investment and growth in responsible mining,” said Price in the company’s news release.
“The merger will combine two world-class companies to form a business of significant scale and capability that will deliver billions in investment and drive new economic activity and job creation here in Canada and beyond,” added Price.
The CEO of Anglo American commented on the combined company’s ability to be a coordinated and diversified force in the industry.
“We are all committed to preserving and building on the proud heritage of both companies,” said Duncan Wanblad.
“In Canada, as home to Anglo Teck’s world headquarters, in South Africa where our commitment to investment and national priorities endures, and across our entire global operational and commercial blueprint,” the statement added, while also making a promise to stakeholders.
“We look forward to our continuing our commitment to engage meaningfully with all stakeholders including Indigenous Peoples and communities,” Wanblad explained.
Federal Industry Minister Melanie Joly endorsed the deal late Monday.
Joly said in a statement she determined the merger will be a net benefit to Canada and called it a “significant win,” claimed the minister.
Joly pointed to the company’s estimate of creating 4,000 Canadian jobs and a five-year investment of $4.5-billion in Canada, which fits into the government’s goals for the Canadian economy.
“It is an unequivocal endorsement of the federal government’s efforts to build the strongest economy in the G-7,” said Joly’s statement.
“Anglo Teck with its global headquarters in Vancouver, will be a truly Canadian champion on the world stage,” Joly’s statement added.
In addition to the cash infusion, the combined company has promised that a significant majority of its senior management will be based in Canada, while a substantial proportion of its board of directors will be Canadian.
Anglo Teck has pledged to put $750 million into the Trail Operation.
That plan includes the possibility of adding critical minerals including germanium and could also see copper processed in Trail.
Shareholders gave their blessing to the merger last week. It was first announced in September.
United Steelworkers Local 480 president Chris Walker said he assumed the federal government would approve the deal, and it was just a matter of when. He said he expects day-to-day operations in Trail will remain unchanged.
Walker said the company kept the union and its members well informed about the merger. “They did a really good job of making sure everybody was aware of what’s happening and when it was happening,” he said.
Walker added that the union did not take a strong position on whether the merger should happen “because it’s not like we have much of a say in it anyways. We just want to make sure the jobs here are protected and everybody has a paycheque every two weeks.
“Our job is to protect the contract that we have here in Trail and make sure that all our employees are going home safe and healthy.”
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