Shares of Teck Resources Ltd. jumped the most since April on the company’s plans to cut debt and return cash to shareholders thanks to proceeds from the sale of its steelmaking coal business to Glencore Plc.

The Canadian mining company said it will buy back as much as $2 billion of B class shares, and distribute roughly $182 million to shareholders through a special dividend in September. It will also start a debt reduction program of up to $2 billion, which includes a cash tender offer to repurchase $1.25 billion in public notes.

The stock posted intraday gains of more than 5%.

Teck announced the moves Thursday after Canada’s federal government cleared the way for Glencore’s $6.9 billion acquisition of its coal assets. The transaction underscores the company’s pivot toward metals that will be critical for the energy transition, such as copper. The completion of the deal marks a new era for Teck, said chief executive officer Jonathan Price.

The proceeds from the deal will also be used to fund Teck’s suite of copper projects. The company is pushing ahead on an extension at its Highland Valley copper mine in Canada, while advancing early-stage projects in Mexico and Peru. It’s also finishing construction on a major extension to its flagship Quebrada Blanca mine in Chile, which is expected to double the firm’s overall copper production.

The estimated capital cost for those projects is between $3.3 billion and $3.6 billion, Teck said.

The deal gives Teck a pathway to increase copper production by a further 30% as early as 2028, Price said in a statement.

“This transaction will enable us to reduce debt and retain significant cash to fund our near-term metals growth and maintain a resilient balance sheet, while also providing a significant return of cash to our shareholders,” said Price.