By: Windhoek observer

Anglo American plc and Teck Resources Limited have received regulatory approval from the Canadian government under the Investment Canada Act for their proposed merger, which was initially announced on September 9. This merger will establish a new entity, Anglo Teck, creating a larger global critical minerals company with operations spanning several regions, including South Africa.

The merged company stated that its South African subsidiaries will continue to comply with all local empowerment requirements and mining license conditions. As part of its commitment to supporting the junior mining sector, Anglo Teck plans to contribute N$600 million to South Africa’s Junior Mining Exploration Fund. This fund, run by the Industrial Development Corporation of South Africa and the South African Department of Mineral and Petroleum Resources, is designed to support qualifying junior miners in their prospecting activities.

Additionally, Anglo Teck has committed to supporting the establishment of a Global Institute for Critical Minerals Research and Innovation, which will involve leading academic and research institutions in Canada, South Africa, and the United Kingdom.

The initial commitments outlined by both companies at the time of the transaction announcement have now been formalized as binding conditions under Canadian law. These include a plan for Anglo Teck to invest at least C$4.5 billion in Canada within five years. This investment will focus on extending the life of the Highland Valley Copper mine, expanding critical minerals processing capacity at the Trail operations, and advancing the Galore Creek and Schaft Creek copper projects in British Columbia. These projects are expected to bring total spending in Canada to at least C$10 billion over 15 years.

Duncan Wanblad, CEO of Anglo American, expressed satisfaction with the regulatory approval, noting it is another step toward creating a global critical minerals leader. Teck’s CEO, Jonathan Price, emphasized that the merger will combine two world-class companies to drive significant investment, economic activity, and job creation in Canada and internationally.