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1) Teck Resources is selling its steelmaking business for $9 billion. Glencore will own 77%, buying it for $6.9 billion, while Nippon Steel Corp will take 20% and pay $1.7 billion in cash and assets. POSCO, a South Korean steelmaker, will have a 3% stake as well, helping finance the buyout. This move comes after Teck's plan to spin off the operations failed to gain shareholder support. The sale hinges on approvals under the Investment Canada Act and competition approvals in various regions. The deal is significant for Teck, as it unlocks value and aides in responsible operation of the coal assets. Glencore's attempt to acquire all of Teck earlier in the year was rejected, as their pursuit of the coal business continued. Glencore assured commitments to benefitting Canada with this purchase, promising job security, environmental efforts, and engagement with Indigenous Nations in the Elk Valley. Teck anticipates using the sale proceeds to reduce debt, retain cash, pay transaction-related taxes, and consider a "significant cash return" to shareholders. The company highlights the potential improvement it its financial leverage following the sale. However, the sale sparked concerns about economic nationalism, with political figures expressing reservations. Ottawa pledged a rigorous approvals process for any takeover bid for Teck. Glencore sees Teck's steelmaking coal business as a complement to its existing coal production in other countries. Ultimately, this sale represents a strategic move for Teck, potentially strengthening its financial position, and ensuring responsible stewardship of the steelmaking coal operations while navigating through regulatory and political scrutiny.
Source: Teck Resources agrees to sell steelmaking coal business in deals valued at $9B US | CBC News
2) Indonesia's President Joko Widodo anticipates concluding talks with US mining company Freeport-McMoRan by the end of November. The discussions involve increasing Indonesia's stake in Freeports local unit, PTFI, by 10% and extending the mining permit by 20 years, as per the statement from the Indonesian presidential palace. President Widodo met with Freeport's Chairman Richard Adkerson during his visit to Washington for the Asia-Pacific Economic Cooperation meetings. Freeport Indonesia, where the government holds a 51% stake through a state-owned entity, has a permit expiring in 2041. Additionally, senior cabinet minister Erick Thohir revealed that talks also included Freeport's potential investments in copper processing facilities within Indonesia. While Freeport is constructing a smelter in East Java, the government seeks the company's investment in a plant in West Papua. The discussions hold significant implications for Freeport's operations and investment in Indonesia. Extending the mining permit and increasing the country's ownership in Freeport's local unit could shape the future landscape of mining activities in the region. Furthermore, the government's emphasis on Freeport's investment in additional processing facilities reflects Indonesia's aim to maximize value addition within its borders. The outcomes of these talks could influence Freeport's strategic decisions regarding its operations and investments in the Indonesian mining sector.