Teck announces new business structure, leadership team
Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE) has announced details of a new business structure to support its shift to being a pure-play energy transition company with a focus on growth.
The new structure has been revealed after the Canadian Government recently approved the US$6.9 billion acquisition of Teck’s metallurgical coal business by Swiss metals trading giant Glencore Plc.
The revised structure organizes the Vancouver-based metals giant into two regional business units.
The North American business unit, which includes Highland Valley Copper operation in British Columbia, Red Dog and Trail operations in Alaska and B.C. respectively, and the Galore Creek, Schaft Creek (both in B.C.), and New Range, Minnesota copper projects.
The Latin American business unit, which includes Carmen de Andacollo and Quebrada Blanca operations in Chile, Teck’s interest in the Antamina mine in Peru, and the Zafranal (Peru), San Nicolas (Mexico) and NuevaUnion (Chile) copper projects.
In alignment with Teck’s new organizational structure, effective September 1, 2024, the executive leadership team reporting to President and CEO Jonathan Price has been reshaped.
Ian Anderson, for example, previously Senior Vice-President and Chief Commercial Officer, has been named Executive Vice President and Chief Commercial Officer, responsible for margin enhancement through sales and procurement strategies and execution.
Shehzad Bharmal, previously SVP, Base Metals, has been named EVP and Chief Operating Officer, responsible for driving safety, operational excellence, and asset optimization at Teck’s operations across the North American and Latin American regional business units.
Additional changes to the leadership team are outlined in a press release that came after the close of trading on Friday, August 30, 2024.
“This new structure will ensure Teck is optimally positioned to operate safely, efficiently and responsibly while capitalizing on profitable growth opportunities and enhancing value for our shareholders and all stakeholders,’’ said Price. “This change simplifies our business with a streamlined executive leadership team and regional structure to support our strategy focused on growth in copper, balanced with shareholder returns and the long-term resiliency of our business,’’ he said.
The North America and Latin American business units will be supported by enterprise-wide functions and a dedicated projects group that will develop and execute brownfield and greenfield projects.
Canada’s Industry Minister Francois-Philippe Champagne recently approved Teck’s previously announced plan to sell its entire interest in its steelmaking coal business, Elk Valley Resources (EVR) via sale of a majority stake to Swiss metals trading giant Glencore Plc and a minority interest to Nippon Steel Corp.
The metals giant said the sale of the steelmaking coal business achieves a simple and complete separation of steelmaking coal from base metals.
“This transaction will be a catalyst to re-focus Teck as a Canadian based critical minerals champion with an extensive portfolio of copper growth projects, unlocking the full value potential of the company,’’ Price has said.
Teck’s Class B common shares eased 4.3% or $2.76 to $61.55. The shares currently trade in a 52-week range of $74.37 and $47.47.