Anglo, Teck merger terms unchanged in spite of production revisions

Deal to acquire Teck gives Anglo access to the Canada-based company’s portfolio of copper mines

- EDWARD WEST

ANGLO American's Quellaveco copper mine in Peru. The group said their planned merger with Canada's Teck resources was on track even though Teck has announced lower copper production guidance due to technical problems at its Quebrada Blanca (QB) copper mine.

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ANGLO American said $50 billion (R858bn) merger terms with Teck Resources would remain unchanged, this barely a month after the deal was announced and after Teck revised downwards its production guidance of its Quebrada Blanca (QB) copper mine.

Teck on Wednesday lowered its guidance for the QB copper mine high in Chile's Atacama desert, as part of a wider operational review, to between 170 000 to 190 000 tons, from previous guidance of 210 000 to 230 000 tons.

The deal to acquire Teck crucially gives Anglo access to the Canada-based company’s portfolio of copper mines - copper has become a sought-after mining commodity given its soaring demand arising out of the global energy transition.

Anglo said in a statement, however, that Teck’s operational review and updated outlook was in line with Anglo's own independent due diligence of the company, and their merger terms remained unchanged.