Through the sale, Glencore, an international commodities producer, will take a 77% majority stake in Teck’s Elk Valley Resources. Nippon Steel Corp., meanwhile, has agreed to acquire 20% stake, and POSCO will hold the remainder.  
 
“We are pleased to have reached agreement to acquire Teck’s steelmaking coal operations in the Elk Valley. These world-class assets and the experienced people that operate them are expected to meaningfully complement our existing thermal and steelmaking coal production located in Australia, Colombia and South Africa,” said Glencore chief executive Gary Nagle. 
 
Elk Valley last year produced 21.5 million metric tons of metallurgical coal. 
 
Glencore intends to combine its position in Elk Valley with its existing coal and carbon steel materials business and create a standalone entity once Glencore has sufficiently reduced its debt. That process is expected to wrap up within 24 months of closing. 
 
“Glencore intends for the demerged company to continue to oversee the responsible decline of its thermal coal operations in line with Glencore’s current targets and ambition to achieve net zero by 2050, with a supportive policy environment, and to adopt the climate transition strategy for the Elk Valley business that will be developed and implemented pursuant to Glencore’s ICA commitments,” the company said.