Steelworkers highlight potential gains in Anglo Teck merger

The United Steelworkers union (USW) cautiously welcomed the proposed merger of mining giants Teck Resources and Anglo American, as it feels it will impact over 2,500 USW members at the Highland Valley Copper mine and the Trail Smelting Operations in British Columbia. The UCW represents 20,000 workers in the mining sector in Canada.

According to MINING.com, Anglo American (LON: AAL) is acquiring Teck Resources (TSX: TECK.A TECK.B, NYSE: TECK), Canada’s largest diversified miner, in a $53-billion all-share merger that would create the world’s fifth-largest copper producer — if regulators in Canada, the United States and China sign off. If completed, Anglo shareholders will own 62.4% of the new company, to be named Anglo Teck, while Teck shareholders will hold 37.6%.

Scott Lunny, director of the USW for western and northern Canada, said: “In announcing this proposed merger, statements by executives from Teck Resources and Anglo American have included promising commitments regarding employment and investments in Teck’s operations in British Columbia.”

The union considers the following commitments announced by Teck and Anglo-America officials as promising: They state that the international headquarters of the merged company, to be called Anglo Teck, will be based in Vancouver. The companies will prioritize critical minerals such as copper, zinc, and iron ore. They plan to continue investing in the extension of Highland Valley Copper mine’s life and in the Galore Creek copper project in northern British Columbia.

Furthermore, they will make additional investments in processing facilities across Canada, especially in the Trail smelter complex. The officials have assured that all collective agreements with unionized workers will be maintained and respected. Lastly, they commit that there will be no net job reductions in Canada.

The union noted that the proposed merger must undergo review under the Investment Canada Act to confirm it offers a ‘net benefit’ to Canadians, as legally required.

Lunny said: “As always in such transactions, we want to meet directly with the companies and with our provincial and federal governments to ensure the merger will result in real and lasting benefits to workers, their communities and to our economic future,”

He added: “Our union expects to be a full and active partner throughout this process. Given the current economic and political climate, ensuring the voices and interests of workers and communities are heard are paramount.”

More information is posted on www.Usw.ca.