FT Live: Anglo American CEO reaffirms merger as Teck slashes forecasts

Core Viewpoint - Anglo American's CEO Duncan Wanblad remains confident in the $50 billion merger with Teck Resources despite recent cuts in copper production forecasts from Teck [1][2]. Merger Insights - Wanblad stated that the merger's value is not affected by Teck's revised production forecasts, emphasizing the extensive due diligence conducted prior to the merger [2]. - The merger will result in Anglo American holding a 50% stake in the new Anglo Teck company [2]. Production Forecasts - Teck Resources has lowered its 2025 output projection for the Quebrada Blanca copper mine in Chile from 210,000–230,000 tonnes to 170,000–190,000 tonnes, marking a decrease of 17% to 19% [2]. - This revision is the second in three months, with the first reduction occurring in July [3]. Strategic Direction - Wanblad highlighted the need for a new approach to mining, indicating that the merger aligns with a future-facing strategy [4]. - The company is restructuring by divesting from nickel, diamonds, platinum, and coal to focus on a more streamlined portfolio [4]. Coal Business Developments - Anglo American is currently in arbitration with Peabody Energy after Peabody withdrew its $3.78 billion bid for Anglo American's Australian coking coal assets, citing a Material Adverse Change (MAC) event [5]. - Wanblad expressed confidence that the situation does not constitute a MAC event, asserting that there is no damage to the asset [5]. - The company plans to remarket its coal business, aiming for a market entry by late this year or early next year [6].