UK-South African mining firm Anglo American will merge with Canadian metals producer Teck Resources to become the Anglo Teck Group, creating a consolidated critical minerals company, which will be headquartered in Canada.
Anglo American will exchange existing Teck shares for 1.3301 Anglo American shares. It will also issue a $4.5bn dividend to existing Anglo American shareholders ahead of the merger.
Anglo American said that Anglo Teck will remain committed to the development of Anglo's Woodsmith polyhalite fertilizer project in North Yorkshire but highlights that progression will depend on the project meeting a stringent investment criteria.
Polyhalite is a naturally occurring mineral, containing one macronutrient — potassium — and three secondary nutrients — sulphur, magnesium and calcium — along with trace amounts of micronutrients. Israeli fertilizer firm ICL has produced polyhalite from the same deposit that Anglo American plans to mine since 2011, selling it under the brand name Polysulphate.
Anglo American had initially targeted commercial output in 2027. But the company said in May 2024 that it would slow investment in the UK mine by injecting $200mn in 2025 and nothing in 2026 to support its balance sheet by deleveraging.
Anglo American acquired the Woodsmith project from UK-based Sirius Minerals in early 2020. Under previous guidance from former owner Sirius, the mine was expected to begin producing polyhalite by the end of 2021.
