2023-05-25 17:31:54 ET
Nippon Steel is still in talks with Teck Resources ( NYSE: TECK ), as it remains eager to take a stake in Teck's high-grade coking coal asset, a top executive at the Japanese steelmaker told Reuters on Thursday.
The amount of our investment may need to be lifted due to Glencore's bid, but we are determined to take 15% or more stake in the coal asset so that we can make it an affiliate unit," executive VP Takahiro Mori said in the interview .
Nippon Steel ( OTCPK:NISTF ) ( OTCPK:NPSCY ) said in February it planned to buy a 10% stake in Elk Valley Resources, the coking coal unit to be spun off from Teck ( TECK ), for ~C$1.15B, with a right to raise its stake to maximum 17.5%, but last month Teck withdrew its plan to split its coal and metals business after failing to win shareholders' approval.
Nippon Steel ( OTCPK:NISTF ) ( OTCPK:NPSCY ) wants to invest in Teck's ( TECK ) high-quality coking coal to secure a stable supply of the key steelmaking ingredient and to gain profits from the asset, Mori said.
If Glencore buys Teck ( TECK ), "there could be a different decision if thermal coal and coking coal are integrated," Mori said, pointing to a negative implication in terms of climate action.
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Nippon Steel still seeking stake in Teck Resources coal asset, exec says