Vancouver-based Teck Resources says it will remain Canadian, even as it plans to merge with British multinational Anglo American in a $70-billion deal that would create a new company called Anglo Teck.
“Without a doubt, you know, this is absolutely going to be a Canadian company,” Teck CEO Jonathan Price told The Canadian Press Tuesday.
“We will be creating the largest head office in Vancouver, and it really is unprecedented to see a company of the size of Anglo American moving its global headquarters.”
One analyst says it represents a vote of confidence in the future of mining operations in B.C. overall, particularly when it comes to the production of metals and minerals aimed at replacing fossil fuels in energy production.
All of this comes as good news for British Columbia Premier David Eby who has continuously placed Teck at the centre of the province’s fight against U.S. tariffs, going so far as to appoint Price co-chair of his task force aimed at managing the trade war.
“Welcome to BC, Anglo Teck!” Eby wrote in a post on social media. “Let’s get to work.”
Teck has two major resource operations in the province: the Highland Valley copper mine about 50 kilometres southwest of Kamloops and the West Kootenay smelting operations in Trail, which produces rare minerals. Combined, they represent hundreds of jobs in the B.C. Interior and millions of dollars to the provincial economy overall.
Following U.S. President Donald Trump’s threats of political annexation of Canada, Eby prioritized the approval process for an expansion of the mine, which exports copper to non-U.S. markets, while also threatening to use the smelter as leverage in a trade war.
“Teck’s smelter in Trail produces metal that is vital for night-vision goggles and other electronic components,” he said at the B.C. Natural Resources forum in January, as the threat of tariffs remained fresh.
After noting that China had already cut off exports of those rare minerals to the United States, Eby said B.C. could do the same if pushed.
“If the United States doesn’t get this metal from the Teck smelter in Trail, it’s not available at all,” he said.
On Tuesday, the premier welcomed the news of the merger on social media, writing “Anglo Teck will be the largest company to set up its global headquarters in B.C., and is set to become the largest critical minerals company in the world,” calling it a vote of confidence in B.C.’s “role as the engine of the new Canadian economy.”
But there are still details be worked out: Despite the promise of a Vancouver headquarters, Anglo Teck would remain incorporated in London, with Price serving as deputy CEO while Anglo American chief executive Duncan Wanblad would retain the top position.
However, Wanblad also said if the deal is approved, he would be moving to Vancouver to run the company, as would chief financial officer John Heasley.
The deal will also be subject to review by the Investment Canada Act, which can be used to block deals deemed not in the national interest. Canadian Industry Minister Mélanie Joly said in a statement that the federal government will address several issues as it considers the merger, including the combined firm’s pledge to have its senior leadership based in and reside in Canada.
John Steen of University of British Columbia’s Bradshaw Research Institute for Minerals and Mining says that unlike some past mergers between Canadian and foreign companies, it seems like “Teck is in the driver’s seat here.”
He noted that Anglo American’s operations have been struggling and despite being touted as a merger of equals, some analysts are speculating that the deal actually represents a soft takeover by Teck with “Anglo being a bit of a lame duck at the moment.”
Steen said Teck’s access to copper and critical minerals make it attractive worldwide, with a recent $23-billion US takeover attempt by Glencore in 2023, which ended with the Swiss mining giant purchasing its coal-mining business and which Teck spun as an opportunity to focus solely on metals.
Steen said if the merger goes through and headquarters are relocated to B.C., it would be a “real endorsement of Vancouver and British Columbia as a global mining capital,” which would open up new opportunities for the industry.
He said the news was making waves in the resource industry internationally, signalling the growing strength of B.C.’s mining assets in the years ahead.
