Client Work

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

February 22, 2023
Authors
Christopher R. SkeltonPartner
Jon C. TruswellPartner
Greg M. JohnsonPartner
Marshall R. HaugheyPartner
Tim MyersPartner
Thomas MachellAssociate
Zirjan (Zee) J. DerwaPartner
Kolding LarsonAssociate
J. Sébastien A. GittensPartner, Trademark Agent
Andrew N. DisipioPartner
Simon FoxcroftPartner
Susan G. SellerPartner

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:

  • secure high-quality steelmaking coal that is essential to Nippon Steel's carbon neutral strategy; and
  • help Nippon Steel create a sustainable and profitable consolidated business portfolio by increasing investment in high-quality raw materials.

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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Authors

Christopher R. Skelton, Partner
Calgary  •   403.298.3309  •   skeltonc@bennettjones.com
Jon C. Truswell, Partner
Calgary  •   403.298.3097  •   truswellj@bennettjones.com
Greg M. Johnson, Partner
Calgary  •   403.298.4470  •   johnson@bennettjones.com
Marshall R. Haughey, Partner
Calgary, Edmonton  •   403.298.3461  •   haugheym@bennettjones.com
Tim Myers, Partner
Calgary  •   403.298.3671  •   myerst@bennettjones.com
Thomas Machell, Associate
Calgary  •   403.298.3445  •   machellt@bennettjones.com
Zirjan (Zee) J. Derwa, Partner
Toronto  •   416.777.6442  •   derwaz@bennettjones.com
Kolding Larson, Associate
Toronto  •   416.777.7829  •   larsonk@bennettjones.com
J. Sébastien A. Gittens, Partner, Trademark Agent
Calgary  •   403.298.3409  •   gittenss@bennettjones.com
Andrew N. Disipio, Partner  •   Head of Mining Industry Team
Toronto  •   416.777.5034  •   disipioa@bennettjones.com
Simon Foxcroft, Partner  •   Co-Head of Corporate Department
Edmonton  •   780.945.4756  •   foxcrofts@bennettjones.com
Susan G. Seller, Partner
Toronto  •   416.777.5638  •   sellersg@bennettjones.com