Teck deals with Anglo Faces indigenous challenge on smelter plan

(Bloomberg) – An indigenous group in Canada promises to be political and legal challenges against Teck Resources Ltd. to bring the merger with Anglo American PLC, unless the companies consult with them about expansion plans for a smelter in southern British Columbia. Teck’s zinc-and-ludmelter in Trail, BC, is on countries that are the responsibility of the Osoyoos Indian Band, according to Chief Clarence Louie. He said Teck had not yet meaningfully talked to the group about the proposed merger and investments for the route, which faced historical complaints about pollution. “To date, we have had significant consequences without any benefit,” Louie said in ‘Ne -mail statement, asking the companies’ proposal to expand the operations without consulting the first nations “unconsciously”. Anglo and Teck agreed this month to combine an agreement that would create a mining giant worth more than $ 50 billion. As part of the transaction, the companies said they would invest as much as C $ 750 million ($ 544 million) in the Trail operations to investigate ways to add copper processing and expand the production for Germanium and other so-called strategic metals. The Government of Canada has the ability to block the proposed transaction under the Investment Canada Act. The ‘net benefit test’ enables the minister to judge any transaction based on a number of factors, including the impact on jobs, exports, technological development and ‘Canada’s ability to compete in global markets.’ Teck and Anglo have made obligations to invest in Canada, move the joint headquarters to Teck’s base of Vancouver and invest C $ 4.5 billion in Canada if the agreement is approved. Canadian Industry Minister Melanie Joly said Tuesday that the companies have not yet done enough to demonstrate the benefits of the country for the country’s economy. In an interview with Bloomberg News, Louie, head of Osoyoos, said he would ask politicians to hinder the agreement unless there was better consultation, which calls the United Nations statement about the rights of indigenous population. The statement was legally adopted by BC and Canada and sets out the need for free, pre -and -informed consent of indigenous groups for measures affecting their countries. The principal said he wanted to discuss involvement through the indigenous population of the area on environmental and cultural issues and the potential for work and income part related to the route operations. The smelter in trail now operated by Teck was founded more than a century ago. “They make these offers about other mines,” Louie said of Teck, referring to transactions that the company beat elsewhere, “but they have nothing with the smelter, nothing in the track.” According to the company’s filing, Teck invested in remediation efforts for trail and worked with local indigenous communities, although the Osoyoos Indian Band is not among groups that are IT names. Louie said attempts were underway to meet Teck CEO Jonathan Price within weeks, after a previous meeting was canceled. Teck said it was in contact with the Osoyoos Indian Band about the proposed merger and look forward to discussing further. “Teck is committed to building and maintaining relationships with indigenous governments affected by our operations and working meaningfully for important projects,” a company spokesman said in ‘NE post statement on Thursday. “It includes track operations as the merger transaction progresses and the potential investments proposed as part of the merger are better defined.” An Anglo spokesman said the company reflected Teck’s comments. If the agreement continues anyway – the companies expect to complete the transaction within 12 to 18 months – the Osoyoos Band is prepared to challenge the businesses in court. “We will use the legal options we have,” Louie said. “Whatever we have to do.” More stories like these are available on Bloomberg.com © 2025 Bloomberg LP