Anglo American still backs Teck merger despite surprise mine downgrade

Anglo American PLC on Wednesday said the rationale for its merger with Teck Resources Ltd remains unchanged, after Teck unexpectedly revised down its production guidance for the Quebrada Blanca operation in Chile.

Teck on Tuesday lowered its copper production estimates for Quebrada Blanca to between 170,000 and 190,000 tonnes in 2025, down from 210,000 tonnes and 230,000 tonnes predicted previously, following an operational review.

Production at the Chilean mine continues to be constrained by the pace of development of the tailings management facility, requiring downtime in the concentrator to manage the rate of tailings rise, Teck said.

Early last month, Anglo American said it had signed an agreement with Teck to combine their respective businesses to form Anglo Teck PLC.

Anglo American shareholders will own 62.4% of the enlarged company and Teck shareholders 37.6%.

While the specific outcome of Teck’s operational review was not known at the time, Anglo American said Teck’s review is broadly consistent with its independent due diligence and analysis.

Anglo American said it conducted significant due diligence on Teck ahead of the merger agreement, which was announced on September 9.

The overall strategic rationale for the merger and all synergy values and their timing, as outlined in the September merger announcement, remain unchanged, Anglo American said.

Anglo American on Wednesday said it is ‘fully’ supports Teck’s ‘more measured approach’ to the ramp up of Teck’s Quebrada Blanca operation over the next few years.

Anglo American shares were up 0.5% in London early Wednesday. Teck B shares closed down 1.5% to $42.40 in New York on Tuesday.

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