Key points
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Anglo Teck merger creates a new global copper leader.
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Company pledges C$4.5 billion investment in Canadian mines.
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Leaders say the deal will drive growth and stability.
Anglo American and Teck Resources have agreed to merge, creating a new company called Anglo Teck. The deal, announced Tuesday, combines two of the biggest names in mining and forms one of the world’s largest copper producers.
Anglo Teck will run six major copper mines in Chile, Peru and Canada. Together, they produce 1.2 million tonnes of copper each year.
The company expects output to rise by 10 percent, reaching 1.35 million tonnes in 2027.
Besides copper, Anglo Teck will also produce iron ore in Brazil and South Africa, zinc from Teck’s Red Dog mine in Alaska, and fertilizer products from a project in the United Kingdom. The group will be based in Vancouver but will keep offices in London and Johannesburg.
Canada secures major investment under merger
Canada pushed for guarantees before approving the deal. Anglo Teck agreed to keep its global headquarters in Vancouver, add Canadian directors to its board, and keep its listing on the Toronto Stock Exchange.
The company also promised to invest C$4.5 billion in Canada over the next five years. Those funds will extend the life of the Highland Valley Copper mine, upgrade Trail Operations in British Columbia, and support new copper projects.
Anglo Teck said it will also look at expanding copper processing in Trail and backing new critical minerals plants in Canada.
These commitments eased concerns in Ottawa about foreign control of natural resources. The Canadian government has taken a harder line on such deals, clearing them only when companies agree to protect Canadian jobs and maintain local oversight.
Leaders call deal a step forward
Duncan Wanblad, CEO of Anglo American and now head of Anglo Teck, said the merger comes at the right time.
“We are accelerating growth while keeping strong ties in Canada and South Africa,” he said.
Jonathan Price, Teck’s CEO, will serve as deputy CEO. He said combining copper, iron ore, and zinc operations with new projects gives the company strength and room to grow.
Industry analysts say the deal reflects a broader trend as mining companies join forces to boost copper output.
London-based brokerage SP Angel noted the merger makes Anglo Teck the world’s second-largest publicly traded copper producer, behind only BHP.
