By Robb M. Stewart

Teck Resources Ltd. is considering a possible spinoff of its steelmaking coal business, which would refocus the Canadian mining company on metals such as copper that are expected to see demand continue to grow thanks to use in electric vehicles and wind- and solar-energy production.

Teck said it is evaluating alternatives for the coal business, including a possible spin-out of a stake to its shareholders.
No decision has been made to proceed with a transaction, and there can be no assurances any deal will eventuate, the company said, adding it doesn’t plan to make additional comments on the matter until a formal decision has been reached.
Bloomberg, citing unnamed people familiar with the matter, earlier reported that Teck was planning to separate its multibillion-dollar steelmaking coal business.
The miner, which has operations and projects in Canada, the U.S., Chile and Peru, is actively mining steelmaking coal from four operations. In 2021, the commodity accounted for about 55% of its gross profit as it produced 24.6 million metric tons that was shipped to customers globally.
Scotia Capital analysts Orest Wowkodaw and Daniel Sampieri said that as Teck’s big Quebrada Blanca Phase 2 copper project in Chile begins and ramps up production, the contribution coal makes to the company’s earnings will lessen, though it currently is a big driver of cash flows used to grow the copper business.
Write to Robb M. Stewart at robb.stewart@wsj.com