Canada’s Teck Resources has revealed a new corporate structure focused on two regional business divisions, North America and Latin America, as part of its transition to a pure-play energy transition metals company.
The North America division includes the Highland Valley copper mine in British Columbia (BC), the Red Dog zinc mine in Alaska and the Trail zinc mine in BC. It also includes the Galore Creek, Schaft Creek and New Range copper development projects in BC and Minnesota.
“This new structure will ensure Teck is optimally positioned to operate safely, efficiently and responsibly while capitalising on profitable growth opportunities and enhancing value for our shareholders and all stakeholders,” said Jonathan Price, Teck Resources’ president and CEO.
The company has also changed its leadership roles, effective 1 September. For example, Ian Anderson, currently serving as senior vice-president and chief commercial officer, has been promoted to executive vice-president and chief commercial officer. In his new role, he will be responsible for improving profit margins through sales and procurement strategies and execution.
Price added: “This change simplifies our business with a streamlined executive leadership team and regional structure to support our strategy focused on growth in copper, balanced with shareholder returns and the long-term resiliency of our business.”
Teck has stated that it will support the two regional units through enterprise-wide functions and a dedicated projects group, which will be responsible for developing and implementing brownfield and greenfield projects.
The Canadian mining company has also transformed its business by selling its steelmaking coal unit based in BC to Glencore, a Swiss commodities trader. This deal, one of the largest in the industry, was finalised earlier this summer, with Glencore paying almost $7bn (SFr5.95bn) for Teck’s 77% stake in the coal business.
In related news, sources familiar with the matter revealed that Chile’s Codelco has bid $500m (464.35bn pesos) to acquire a stake in the Quebrada Blanca mine operated by Teck Resources, according to reports.
According to anonymous sources, Codelco is reviewing a proposal to purchase a 10% stake in the Quebrada Blanca mine from the state company Enami. The deal has not been made public yet.
The Quebrada Blanca mine is 60% owned by Teck and 30% by Sumitomo, with Enami having a 10% carried interest that relieves it from funding capital expenditures.
Reports say the sale would help Enami reduce its debt after years of losses from processing minerals for small Chilean mines while avoiding the need for more public funds.
If Codelco acquires the stake, it could increase its output, which reached a 25-year low last year, and prevent BHP Group from becoming the world’s largest copper company.
