Woodsmith Mine Owner to Merge with Canadian Mining Firm

Anglo American and Canadian firm Teck Resources have announced an agreement to combine in a merger of equals, creating a new entity named Anglo Teck.

This merger is set to establish a major global critical minerals champion, which will be headquartered in Canada.

The newly formed Anglo Teck is anticipated to become a top five global copper producer, boasting an industry-leading portfolio of operations, including six world-class copper assets. The combined entity will also feature high-quality premium iron ore and zinc businesses, providing cash flow diversification and enhanced financial resilience.

Commitment to the Woodsmith Project on the Yorkshire Coast

Despite the global scope of the merger, Anglo Teck has affirmed its commitment to advancing existing projects, including the Woodsmith project on the Yorkshire Coast. The firms say that the Woodsmith project has the potential to be a "generational asset in crop nutrients". However, its full development remains "contingent on meeting stringent investment criteria for risk-adjusted value, a process that includes seeking syndication with one or more investment or strategic partners".

Anglo American Chief Executive Officer, Duncan Wanblad, commented on the broader strategic move, stating,

"We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long".

He further emphasised the shared values and complementary portfolios of the two companies.

The new company also intends to uphold Anglo American’s historical ties and commitments in the UK. Anglo Teck is expected to continue playing a significant role in mining and business leadership within the United Kingdom. Upon completion of the merger, Anglo Teck plc will inherit Anglo American’s UK incorporation and tax status. 

The boards of both Anglo American and Teck have unanimously supported and recommended the transaction, believing it to be in the best interests of their respective shareholders. The merger is expected to yield approximately US$800 million in pre-tax recurring annual synergies by the end of the fourth year following completion.

Shareholders of Anglo American are projected to own approximately 62.4% of Anglo Teck plc immediately following completion, with Teck shareholders owning roughly 37.6%. A special dividend of US$4.5 billion, equivalent to about US$4.19 per ordinary share, is intended to be paid to Anglo American shareholders prior to the merger's completion. The merger is anticipated to close within 12-18 months, subject to customary completion and regulatory conditions.

Leadership of the combined entity will see Duncan Wanblad as CEO, Jonathan Price as Deputy CEO, and John Heasley as CFO, with Sheila Murray serving as Chair. A significant majority of the senior executive team will be based in Canada, with corporate offices also maintained in London and Johannesburg.

Jonathan Price, CEO of Teck, highlighted that this merger of two highly complementary portfolios will create a leading global critical minerals champion headquartered in Canada. He noted it is "a natural progression of our strategy and portfolio simplification" that will provide "enormous resiliency and optionality".

Scarborough and Whitby MP - Alison Hume - has welcomed the announcement saying:

“I welcome the merger of Anglo American and Teck. It’s a smart deal which has been received positively by the markets and positions Anglo Teck as an industry-leading company in critical minerals and crop nutrients. I have been assured that Woodsmith Mine is very much part of Anglo Tek’s future.

My primary focus has always, and will always be, the skilled jobs and opportunities that a fully operational polyhalite mine will secure for my constituents. At the moment the shaft sinking operation is negotiating the tricky Sandstone layer, but steady progress is being made.

I will continue to champion both Woodsmith and the operational Boulby mines in Parliament, pressing the Government to recognise the strategic importance of polyhalite as a critical mineral.

Anglo American has already shown itself to be a trusted community champion and so I took the opportunity during my conversation with Technical Director Tom McCulley to ask him to take a personal interest in the community campaign to save the historic Whitby Cliff Lift. He assured me he would look into it.

I'm hopeful that together we can find a way to save the lift, unlike North Yorkshire Council, who would prefer to pay £500,000 to fill it in and with it, a huge chunk of Whitby history and the chance of keeping the chalets and the beach fully accessible for future generations.”