The 'new purchase deal from Swiss commodities trader Glencore was rejected by the board of Canadian miner Teck Resources unanimously. CEO Jonathan Price stated that the proposal's "fundamental flaws" continued to make it a "nonstarter." He stated in a statement that the plan "does not address significant inherent risks, includes large regulatory obstacles, regional and ESG issues, and base metals business dilution due to sizeable oil trading."

Teck hasn't changed its mind about the advantages that its proposed division into Teck Metals and Elk Valley Resources (EVR) will provide.

Chairwoman Shiela Murray stated that two opportunistic and unrealistic recommendations made by Glencore should transfer substantial value to Glencore at the expense of Teck shareholders.

"Teck's proposed split opens up a much wider range of possibilities for maximising value for Teck shareholders. As the best approach to fully capture the maximum value, the special committee and board continue to advise shareholders to support the proposed split into Teck Metals and EVR.

The time is not right to investigate a transaction of this sort at this time, according to Dr. Norman Keevil, chairman emeritus of Teck. "I have the utmost confidence in the strategy adopted by the board and our management teams to maximise value for each shareholder of Teck Metals and EVR following the separation."

Teck also made measures in order to enhance the amount of free cash flow that could be distributed to shareholders and to enable a quicker complete separation of Teck Metals and EVR.

After consulting with shareholders, Teck lowered the minimum period of the royalty that EVR pays to Teck Metals from roughly 5.5 years to 3 years, potentially accelerating the process of fully separating Teck Metals and EVR. Teck also put measures in place to limit EVR's annual capital spending to $1.3 billion, with exceptions for social and regulatory requirements.

According to comments from shareholders, "Teck management and the board have had extensive shareholder engagement. Based on this feedback, based on this feedback, we've chosen to execute these modifications in order to enable for an earlier full separation and improve alignment between EVR and Teck Metals," Price added. The interests of Teck Metals shareholders will be further protected, in our opinion, by these adjustments that will increase certainty.