Anglo American’s proposed mega-merger with Teck Resources has moved a step closer, with approval by the Canadian government for the deal. The Canadian government has given the nod for the proposed merger, clearing a key regulatory hurdle for the creation of what the companies describe as a new global “critical minerals champion” headquartered in Vancouver. The approval, granted under the Investment Canada Act and announced on Wednesday, allows the two mining groups to move forward with their planned merger of equals, first announced in September and backed by shareholders earlier this month.
The transaction’s completion is still subject to further competition and regulatory approvals in other jurisdictions. As part of the clearance, Anglo American and Teck have agreed to a set of binding commitments with the Canadian government covering governance, investment, employment and community obligations. Several of these undertakings, including those related to executive leadership and board composition, will apply on a permanent basis.
The merged company, to be known as Anglo Teck, will locate its global headquarters in Canada and base a majority of its senior management there. This will include the CEO, deputy CEO and CFO, all of whom will reside primarily in the country. Anglo Teck has committed to investing at least C$4.5bn (R54.8bn) in Canada within five years, rising to a minimum of C$10bn over 15 years.
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The investment programme is largely focused on copper and critical minerals assets in British Columbia, aligning with Canada’s efforts to strengthen domestic supply chains for minerals used in electrification and clean energy technologies. Among the largest projects is the Highland Valley Copper mine life extension, which is expected to require between C$2.1bn and C$2.4bn in capital expenditure. The company will also invest up to C$850m at Teck’s Trail Operations in British Columbia to maintain and upgrade critical minerals processing facilities.
In addition, Anglo Teck has committed to advancing the Galore Creek and Schaft Creek copper projects in northwestern British Columbia, with planned capital spending of up to C$750m. The company will also explore opportunities to expand copper production at Trail and assess the feasibility of constructing a new copper smelter in the province, though no commitment to proceed has been made. Separately, Anglo Teck plans to contribute R600m to South Africa’s Junior Mining Exploration Fund, maintaining investment and governance links with the country after the merger.
The transaction comes as Anglo American continues to reshape its portfolio. The group has announced the sale of its steelmaking coal and nickel businesses and the planned separation of its diamond unit, De Beers, leaving it more heavily weighted toward copper and other minerals linked to long-term energy transition demand.
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