Nippon Steel Commits to $1.15 Billion Investment in Elk Valley Resources in Teck Spin Off

February 22, 2023

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Bennett Jones is representing Nippon Steel Corporation in its proposed $1.15 billion investment in Elk Valley Resources Ltd. (EVR), a steelmaking coal business to be spun-out as an independent public company from Teck Resources Ltd.

Nippon Steel and EVR have agreed that concurrently with the completion of the investment, they will enter into long-term coal offtake rights agreement, under which EVR will supply steelmaking coal to Nippon Steel.

The $1.15 billion investment will:

More details are available in Nippon Steel's press release and in Teck's release.

The Bennett Jones team is led by Chris Skelton (Commercial, M&A) and includes Jon Truswell and Duncan D'Arcy (M&A, Public Markets), Greg Johnson and Marshall Haughey (Tax), Tim Myers and Thomas Machell (Regulatory), Zee Derwa and Kolding Larson (Competition), Kieran Brennan (Commercial, M&A), Sébastien Gittens (Intellectual Property), Andrew Disipio (Mining), Simon Foxcroft and Stirling Wood (Corporate), and Susan Seller (Pensions and Benefits).

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