Nippon Steel still in talks with Teck as it seeks stake in coal asset
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Update time : 2023-05-26 17:00:32
Nippon Steel Corp is still in talks with Teck Resources, despite Glencore's bid for the Canadian miner, as Japan's top steelmaker remains eager to take a stake in Teck's high-grade coking coal asset, a senior executive said. "We are still negotiating with Teck toward making an equity investment in coal assets," executive vice president Takahiro Mori told Reuters in an interview on Wednesday. "The amount of our investment may need to be lifted due to Glencore's bid, but we are determined to take 15 per cent or more stake in the coal asset so that we can make it an affiliate unit," he said. Nippon Steel said in February it will spend around 1.15 billion Canadian dollars ($860 million) to buy a 10 per cent stake in Elk Valley Resources Ltd (EVR), the coking coal unit to be spun off from Teck, with a right to raise its stake to maximum 17.5 per cent. But Teck last month withdrew its plan to split its coal and metals business after it failed to receive shareholders' approval.
