Business

Teck Resources denies report of merger deal with Chilean miner Antofagasta

Teck Resources Ltd. denied a report Monday that it has been in talks regarding a possible merger with Chilean copper miner Antofagasta.
Two workers inspect copper plates at an Antofagasta facility in Chile. A report linked the mining giant to Canada's Teck Resources on Monday. (Matias Recart/Bloomberg)

Teck Resources Ltd. denied a report Monday that it has been in talks regarding a possible merger with Chilean copper miner Antofagasta.

"Teck reports that it is not in discussions with Antofagasta in relation to any form of transaction," the company said in a brief statement made at the request of regulators.

"There are no other corporate developments that justify any significant movement in its share price."

Shares in the company were up sharply after Bloomberg cited unidentified sources as saying that the companies had held early stage talks.

The stock closed up $1.98 or 11 per cent at $19.45 on the Toronto Stock Exchange.

Slowdown in mining deals

Teck is one of Canada's largest mining companies with a diversified portfolio of mines.

The company's copper operations include the Quebrada Blanca and Carmen de Andacollo mines in Chile and the Antamina mine in Peru. Teck also has the Highland Valley Copper mine in British Columbia and Duck Pond operation in Newfoundland.

Teck is also one of the world's largest producers of zinc and a major producer of steelmaking coal with five coal mines in B.C. and another in Alberta.

Any deal would have required the approval by the families that control Teck and Antofagasta.

Teck is controlled through multiple voting shares by the Keevil family and Sumitomo Metal Mining Co. Ltd., while Antofagasta, listed on the London Stock Exchange, is controlled by Chile's Luksic family.

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