Staff Writer
Anglo American plc and Teck Resources Limited have received regulatory approval from the government of Canada under the Investment Canada Act for their proposed merger, announced on 9 September.
The merger will create Anglo Teck, a larger global critical minerals company with operations and projects across several regions, including South Africa.
Following the merger, Anglo Teck said its subsidiaries operating in South Africa will continue to comply with all empowerment requirements and mining licence conditions.
As part of its support for the junior mining sector, Anglo Teck plans to contribute N$600 million to South Africa’s Junior Mining Exploration Fund.
The Industrial Development Corporation of South Africa and the South African Department of Mineral and Petroleum Resources collaborate to run the fund.
It aims to support qualifying junior miners with prospecting work.
Anglo Teck has also committed to supporting the establishment of a Global Institute for Critical Minerals Research and Innovation.
The institute will involve leading institutions in Canada, South Africa, and the United Kingdom.
Anglo American and Teck outlined several commitments when the transaction was announced in September.
These have now been formalised as binding conditions under the Investment Canada Act.
The commitments include a plan for Anglo Teck to spend at least C$4.5 billion in Canada within five years.
This includes investment in extending the life of the Highland Valley Copper mine, expanding critical minerals processing capacity at Trail and advancing the Galore Creek and Schaft Creek copper projects in northwestern British Columbia.
These investments are expected to bring total spending in Canada to at least C$10 billion over 15 years.
Duncan Wanblad, chief executive officer of Anglo American, said, “We are delighted to receive regulatory approval from the Government of Canada for our merger of equals with Teck. Today’s confirmation by Minister of Industry Mélanie Joly marks yet another step towards forming a major global critical minerals powerhouse, following the overwhelming endorsement of both our and Teck’s shareholders last week.”
Jonathan Price, president and chief executive officer of Teck, said, “The government of Canada’s approval is an important step forward in the formation of Anglo Teck, a new global critical minerals champion headquartered in Canada. This 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.”
Caption
Anglo Teck plans to contribute N$600 million to South Africa’s Junior Mining Exploration Fund.
- Photo: Contributed
