By Melanie Burton MELBOURNE (Reuters) -Top global miner BHP's focus on expanding its own copper assets while it undergoes leadership change means it is unlikely to gatecrash the planned $53 billion tie-up of Anglo American and Teck Resources, investors and bankers said on Wednesday. London-listed Anglo American and Canada's Teck Resources announced a merger on Tuesday, marking the sector's second-biggest tie-up ever, to forge a new global copper-focused heavyweight. The deal came just over a year after ...

Summary of South32's Climate Change Action Plan Presentation Company Overview - **Company**: South32 - **Industry**: Mining and Metals Key Points and Arguments Climate Change Action Plan (CCAP) - South32 is presenting its second CCAP, highlighting progress since the first plan released in February 2022 [3][4] - The company acknowledges the significant impact of climate change on the mining industry, affecting both the commodities produced and the methods of production [4][5] - The energy transition presents both opportunities (increased demand for critical minerals) and risks (energy intensity of metal processing) [4][5] Strategic Focus - South32 is focusing on positioning its portfolio for the energy transition, reducing operational emissions, and supporting emissions reduction across its value chain [5][6] - The company aims to achieve net zero operational emissions by 2050, with a target to halve net operational emissions by 2035 [6][12] - The portfolio has shifted from less than 50% revenue from aluminum and base metals in 2015 to approximately 90% today [7] Portfolio Development - Development of the Taylor deposit at the Hermosa project is expected to yield attractive returns by producing zinc, lead, and silver, which are critical minerals [8] - South32 is actively exploring new base metals mines and has exited lower-return businesses to focus on high-return opportunities [9] Emission Reduction Efforts - Over 90% of operational emissions come from the aluminum value chain, with significant contributions from Hillside and Worsley operations [14][15] - Hillside's emissions are primarily from coal-fired power, and the company is seeking affordable low-carbon energy solutions [16][18] - Worsley Alumina has reduced emissions through coal-to-gas boiler conversions, contributing to a 12% reduction in scope one emissions [19][20] Financial and Operational Resilience - The company is implementing a three-year climate adaptation and resilience plan to improve resilience to physical climate risks [22] - South32 is focused on engaging with stakeholders to secure low-carbon power and improve energy efficiency [30][46] Future Outlook - The company is committed to transparently reporting progress and addressing challenges related to climate change [25][26] - Key milestones include securing affordable electricity for Hillside by 2031 and continuing decarbonization efforts at Worsley [47][48] Additional Important Content - The geopolitical landscape of climate action is becoming more fragmented, increasing uncertainty for companies like South32 [5] - The company recognizes the importance of multi-stakeholder collaboration to achieve its climate goals [30][46] - South32 has reduced scope three emissions by around 80% since FY 2019, largely due to the sale of Illawarra metallurgical coal [21] - The company is actively assessing physical climate risks and their financial implications as part of its risk management processes [41][42] This summary encapsulates the critical aspects of South32's climate strategy, operational focus, and future commitments in the context of climate change and the energy transition.

Climate Change Action Plan - South32 set a target to halve net operational emissions (Scope 1 and 2) by FY35, relative to FY21 levels[28] - The company expanded its net zero by 2050 goal to include Scope 3 emissions[28] - South32 sold Illawarra Metallurgical Coal (IMC), reducing transition risk and Scope 3 emissions[28] - The company converted two of Worsley Alumina's coal-fired boilers to natural gas as an interim step[28] Portfolio and Capital Expenditure - 51% of South32's FY25 Underlying EBITDA is from the Aluminium value chain[30] - 23% of South32's FY25 Underlying EBITDA is from Manganese[30] - 100% of South32's capital expenditure is directed towards transition materials[36] - Capital expenditure during CCAP 2022 (FY23 to FY25) was US$71 million[40] Emissions - Hillside Aluminium accounts for 58% of South32's operational emissions[45] - Worsley Alumina accounts for 16% of South32's operational emissions[45] - Mozal Aluminium accounts for 17% of South32's operational emissions[45] - Portfolio reshaping has contributed to an approximately 80% reduction in Scope 3 emissions[63]

Company Mergers and Acquisitions - Anglo American and Teck Resources are merging in a $53 billion deal, creating the world's fifth-largest copper company and marking the second-largest mining M&A deal ever [1] - Investors reacted positively, with Anglo shares rising 9% and Teck shares increasing by 11% following the announcement [1] Employment and Economic Indicators - The number of new U.S. jobs created through March was revised down by almost a million, marking the largest downward revision on record [2] - U.S. employment growth revisions and upcoming inflation data are influencing market sentiment and expectations regarding Federal Reserve policy [5][7] Market Performance - Japan's Nikkei index reached a record high but closed lower, while the S&P 500 and Nasdaq achieved record closing highs [3] - UK miners saw a 2.7% rise in shares due to the Anglo/Teck merger, while other sectors experienced varied performance [3] Inflation and Federal Reserve Policy - The Federal Reserve is expected to cut interest rates next week despite inflation being around 3%, which is above the 2% target [7][8] - There is a growing sentiment that 3% inflation may be considered the new 2%, as consumer inflation expectations have risen [13][14] Global M&A Activity - Global M&A activity reached $2.6 trillion in the first seven months of the year, the highest since 2021, driven by tight spreads and favorable financial conditions [6]

Core Viewpoint - Anglo American plc and Teck Resources have agreed to a merger of equals, creating a combined mining group valued at approximately $55 billion [1] Group 1: Merger Details - The merger will result in a new entity named Anglo Teck, headquartered in Vancouver, with primary listing in London and secondary listings on TSX, JSE, and NYSE [1] - The deal is structured with a nil premium, and Anglo shareholders will receive a $4.5 billion special dividend prior to completion [2] - Post-merger, Anglo shareholders are expected to hold around 62.4% of the new entity, while Teck investors will own approximately 37.6% [3] Group 2: Financial Projections and Strategy - The combined company is projected to generate about 70% of its earnings from copper, with iron ore contributing the majority of the remainder [3] - Management aims for $800 million in annual cost savings within four years and anticipates a $1.4 billion EBITDA boost from combining Collahuasi and Quebrada Blanca [5] - The transaction is expected to accelerate Anglo American's portfolio reshaping, potentially leading to a focus on becoming a pure copper producer if coal, iron ore, and De Beers businesses are divested [4] Group 3: Market Reaction and Future Outlook - Following the announcement, NGLOY shares increased by 10.90% to $17.16, while Teck shares rose by 12.70% to $39.57 [6] - Analysts note that both companies have been past takeover targets, keeping them in the M&A spotlight, but see limited risk of competing bids due to Teck's share-class protections and Anglo's higher valuation compared to peers [5]

By Clara Denina and Iain Withers LONDON (Reuters) -The $53 billion planned merger between Anglo American and Teck Resources announced on Tuesday marks a breakthrough after years of failed mining sector consolidation attempts and could spur their rivals to action. The sector's second-biggest ever tie-up that would create the world's fifth-largest copper company appears to have broad support. Anglo shares rose 9%, while Teck stock was up 14% after the announcement. Rivals Glencore, BHP, and Rio Tinto, whi ...

Group 1: UK Economic Outlook - The UK is facing a challenging fiscal position characterized by sluggish growth, persistent inflation, and rising borrowing costs [3][53][69] - Rachel Reeves, the Chancellor, is expected to implement significant tax increases in the upcoming autumn Budget on November 26, which may not effectively improve the fiscal situation based on historical data [5][6][66] - The Confederation of British Industry has urged the Chancellor to focus on long-term strategic tax reforms rather than adhering strictly to previous manifesto promises [1] Group 2: US Job Market and Economic Indicators - The US economy has shown signs of weakening, with a significant downward revision of job growth figures, indicating that only about 70,000 jobs were added monthly instead of the previously estimated 147,000 [8][29] - Jamie Dimon, CEO of JP Morgan, expressed concerns about the US economy's health, suggesting it may be on the brink of recession [2] - The Federal Reserve is anticipated to cut interest rates in response to the softening job market, with traders betting on a potential rate cut at the next meeting [12][23] Group 3: Global Market Reactions - Global stock markets have reacted to the disappointing US job figures, with the MSCI World index and S&P 500 showing slight declines [20][22] - The FTSE 100 index in the UK saw a modest increase, driven by gains in mining companies following a merger announcement [60] - Gold prices reached a new record high, driven by expectations of interest rate cuts, highlighting a shift in investor sentiment towards safe-haven assets [47][51]

Varun Sikka, AlphaValue SAS Metals and Mining Analyst, says the Anglo-Teck deal that will create a more than $50B mining company is a win win for both firms' shareholders, with copper being a big focus area that aligns both firms' leadership team. He tells Open Interest the firms' value alignment is likely reflected in the rising shares today. ...

Group 1: Market Overview - Markets are relatively quiet with equities flat, while crude oil and gold prices have seen slight increases. The dollar and interest rates are gradually rising [1]. Group 2: Mega-Merger Announcement - Anglo American Plc (NGLOY) and Teck Resources Ltd. (TECK) are set to merge in a $55 billion transaction, creating a new entity named "Anglo Teck" which will be headquartered in Vancouver and primarily listed in London [1]. Group 3: Mining Sector Insights - The combined company will have mining operations producing iron ore, copper, zinc, and other metals across various countries including Chile, Peru, Canada, South Africa, Brazil, Finland, and the US. This merger is part of a trend in the mining sector where companies are seeking greater exposure to copper, a critical metal for the energy transition [3].

Summary of Anglo American and Teck Resources Merger Conference Call Industry and Companies Involved - **Industry**: Mining, specifically focusing on copper and critical minerals - **Companies**: Anglo American and Teck Resources Core Points and Arguments 1. **Merger Announcement**: The merger between Anglo American and Teck Resources is described as a "merger of equals," aimed at creating a leading copper and critical minerals producer, expected to generate billions in value for shareholders [4][10][41] 2. **Copper Production**: The combined entity, referred to as Anglo Tech, will have over 1,200,000 tonnes of annual copper production, with more than 70% copper exposure, positioning it as a top five copper producer globally [4][10][16] 3. **Synergies**: The merger is projected to yield over $800 million in pretax recurring annual synergies, with an additional $1.4 billion uplift in annual average underlying EBITDA anticipated from operational efficiencies [5][7][30][41] 4. **Operational Efficiency**: The merger is expected to enhance operational performance and deliver substantial efficiencies through economies of scale and optimized resource utilization [6][10][30] 5. **Geographical Focus**: The headquarters will be in Vancouver, Canada, reflecting the majority of assets being in the Western Hemisphere, and emphasizing the importance of Canadian mining expertise [8][34] 6. **Market Positioning**: The merger aims to create a significant presence in global capital markets with listings on multiple exchanges, including the London Stock Exchange, Johannesburg Stock Exchange, and New York Stock Exchange [8][19] 7. **Long-term Value Creation**: The combined company is committed to long-term value creation, focusing on sustainability, community engagement, and responsible resource development [40][41] 8. **Regulatory Approvals**: The merger will require customary regulatory approvals, including antitrust and competition approvals in various jurisdictions, with expectations to close within 12 to 18 months [15][97] Additional Important Content 1. **Asset Integration**: The integration of Quebrada Blanca and Collahuasi is highlighted as a key opportunity for value creation, with plans to run higher-grade ore through existing infrastructure [6][25][26] 2. **Financial Strategy**: The new entity will maintain a strong balance sheet, balancing capital returns to shareholders with investments in high-return growth projects [32][66] 3. **Cultural Alignment**: The merger is underpinned by strong cultural affinity and values alignment, with expectations of 80% implementation of identified synergies by the end of the second year post-merger [30][31] 4. **Commitment to Canada**: The merger emphasizes a commitment to the Canadian mining ecosystem, with significant investments planned to support local communities and indigenous peoples [35][81] 5. **Challenges and Risks**: Discussions around operational challenges at Quebrada Blanca and the need for careful management of tailings and production ramp-up were addressed, indicating a cautious but optimistic outlook [70][72] This summary encapsulates the key points from the conference call regarding the merger between Anglo American and Teck Resources, highlighting the strategic rationale, expected synergies, and commitment to sustainable practices in the mining industry.