Glencore Secures Final Approval for Elk Valley Resources Acquisition

Glencore has secured approval from the Government of Canada under the Investment Canada Act (ICA) for its acquisition of a 77% interest in EVR from Teck Resources. This crucial approval marks the final regulatory hurdle for the transaction, allowing it to move forward as planned. With all regulatory requirements now satisfied, the transaction is anticipated to close on July 11, 2024. This acquisition represents a significant strategic move for Glencore, enabling it to expand its portfolio and strengthen its market position. The approval underscores the confidence of the Canadian government in Glencore's investment and operational capabilities within the country.

Gary Nagle, CEO of Glencore, expressed satisfaction with receiving final regulatory approval for the acquisition of EVR, anticipating its completion and integration into the Glencore Group. He highlighted the significance of Glencore’s Canadian assets, some with a history spanning over a century, as a crucial part of their global operations. Nagle emphasized that investing in EVR will bolster Glencore's standing as one of the largest diversified miners and suppliers of critical minerals in Canada, reinforcing their commitment to supporting the country's mining industry and contributing to their global business strategy.

Gary emphasized the substantial commitments made to the Canadian government to ensure that the acquisition brings lasting benefits to Canada and British Columbia. These commitments include creating and sustaining employment opportunities, implementing robust environmental protection measures, and fostering constructive and meaningful engagement with the Indigenous Nations in the Elk Valley. Nagle highlighted Glencore's dedication to contributing positively to the local communities and the broader region, underscoring their commitment to social responsibility, environmental stewardship, and inclusive dialogue with Indigenous groups, all aimed at promoting long-term sustainable development and mutual prosperity.

He also added that the acquisition of EVR will significantly enhance their portfolio, expanding their capacity to supply high-quality steelmaking coal, a crucial commodity for the energy transition, to global customers. He highlighted that this acquisition is expected to contribute substantial cash flows to the Glencore Group, underscoring its strategic value. Nagle's statement reflects Glencore's commitment to strengthening its market position and supporting the global transition to more sustainable energy sources.

As disclosed in Gelcore’s 2023 Annual Report, we will soon initiate a consultation process to gauge shareholder perspectives on the potential demerger of our combined coal and carbon steel materials business. This process aims to gather valuable feedback and insights from our shareholders, ensuring their views are considered in our strategic decision-making.

Glencore, a global leader in diversified natural resources, plays a critical role in supplying the essential commodities that power their world and drive progress towards a lower-carbon future. Their extensive global network connects producers, processors, recyclers, and consumers, ensuring a reliable and sustainable supply chain for vital resources that underpin decarbonization efforts.