The completion of the Elk Valley Resources (EVR) sale positions Teck as a leading producer of energy transition metals. Credit: Roman Vasilenia/Shutterstock.

Canadian mining company Teck Resources (Teck) has completed the sale of its remaining 77% stake in the steelmaking coal business EVR to Glencore.

Subject to customary closing adjustments, Teck received total cash proceeds of $7.3bn for this divestiture.

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Earlier this month, Teck obtained all necessary regulatory approvals for divesting its remaining 77% stake in EVR.

Teck stated that it intends to use the proceeds from this transaction to repurchase up to C$2.75bn of its Class B subordinate voting shares, reduce its debt by up to $2bn and invest in copper growth opportunities.

At that time, Teck president and CEO Jonathan Price commented: “Completion of this transaction will provide substantial funding for our projects, giving Teck a pathway to increase copper production by a further 30% as early as 2028.

“This transaction will enable us to reduce debt and retain significant cash to fund our near-term metals growth and maintain a resilient balance sheet, while also providing a significant return of cash to our shareholders.”

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The completion of the EVR sale positions Teck as a leading producer of energy transition metals, ready to unlock the value of its copper growth portfolio.

Teck operates “long-life, high-quality producing assets in stable and well-established jurisdictions” across the Americas.

With the ramp-up of the QB mine in 2024, the company anticipates doubling its copper production to nearly 600,000 tonnes annually.

In January this year, the Canadian company announced the divestiture of a minority stake in EVR to Nippon Steel (NSC) and POSCO.

As part of the deal, NSC acquired a 20% interest in EVR by exchanging its previous 2.5% interest in Elkview Operations and paying Teck $1.3bn in cash at closing, with an additional $400m to be paid from EVR’s future cash flows.

POSCO exchanged its 2.5% interest in Elkview Operations and its 20% interest in the Greenhills joint venture for a 3% stake in EVR.