Teck Resources Ltd has announced the closing of the sale of a minority interest in its steelmaking coal business, Elk Valley Resources (EVR), to Nippon Steel Corp. (NSC) and POSCO.

NSC has acquired a 20% interest in EVR in exchange for its prior 2.5% interest in Elkview Operations, US$1.3 billion in cash paid at closing to Teck, and US$0.4 billion paid subsequently to Teck out of cash flows from EVR. POSCO has exchanged its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% interest in EVR.

Closing of the sale of the remaining interest (77%) in EVR to Glencore PLC is expected to occur in 3Q24, subject to the satisfaction of customary conditions, including receipt of approvals under the Investment Canada Act and competition approvals in several jurisdictions.