Anglo American and Canadian mining giant Teck Resources have agreed a merger of equals, creating Anglo Teck, which will be a major player in critical minerals and a top five copper producer.

Announced today, 9 September, Anglo Teck will have six world-class copper assets. “Anglo Teck will also retain growth optionality across its wider product portfolio, including in premium iron ore, zinc and crop nutrients,” said the statement from Anglo American.

The new company will be headquartered in Vancouver, with leadership offices in London and Johannesburg. Anglo Teck is expected to deliver annual pre-tax synergies of approximately US$800 million by the end of the fourth year following completion of the transaction.

Regarding crop nutrients, the deal includes the Woodsmith polyhalite mine project in the UK. Today’s statement said: “Anglo Teck will continue to progress the development of the Woodsmith project in the UK with its ongoing potential to be a generational asset in crop nutrients. Full development remains subject to meeting stringent investment criteria for risk-adjusted value, including syndication to one or more investment / strategic partners.”

Duncan Wanblad, Chief Executive Officer of Anglo American and named as CEO of new entity, commented on the merger: We have a unique opportunity to bring together two highly regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values.

In August, Anglo American said that it was still working on a final investment decision (FID) on the Woodsmith polyhalite mine, UK.