One expert says Teck Resources' plan to separate its coal business from its base metals operations shows the influence of the sustainable finance movement.
The Vancouver-based mining company announced Tuesday that it will spin off its steelmaking coal assets to create a separate publicly traded company called Elk Valley Resources Ltd.
Teck Resources will become Teck Metals Corp., and will focus on the production of copper and zinc, two metals used in electric vehicle batteries and renewable energy installations.
Teck says the separation will offer investors choice between two unique businesses and commodity types.
Len Brooks with the University of Toronto's Rotman School of Management says banks and other financial institutions are under increasing pressure from shareholders to make their lending policies for coal and fossil fuel companies more stringent and explicit.
He says Teck is likely hoping to shore up more positive investor support for its critical minerals business by separating it from its coal operations.
This report by The Canadian Press was first published Feb. 22, 2023.
Companies in this story: (TSX:TECK.B)
The Canadian Press