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Canada indigenous group challenges Teck-Anglo merger over smelter expansion
Yahoo Financeยท 2025-09-19 13:57
Core Viewpoint - The proposed merger between Teck Resources and Anglo American faces opposition from the Osoyoos Indian Band, which demands consultations regarding the expansion of a smelter in British Columbia [1][2]. Group 1: Opposition and Demands - The Osoyoos Indian Band intends to use political and legal measures against the merger if consultations about the smelter expansion are not conducted [1]. - Chief Clarence Louie emphasizes that the land of the smelter is under the jurisdiction of the Osoyoos Indian Band and criticizes the lack of communication from the companies regarding the merger [2]. - The chief describes the companies' proposal to expand operations without consulting First Nations as "unconscionable," citing historical grievances related to pollution from the Trail operations [2]. Group 2: Merger Details - Teck and Anglo American announced a merger valued at over $50 billion, which includes a commitment to invest up to C$750 million (approximately $544 million) in the Trail facilities for copper processing expansion and increasing output of strategic metals [3]. - The Canadian Government has the authority to veto the merger under the Investment Canada Act, which includes a "net benefit test" evaluating job impact, exports, and technological advancement [4]. Group 3: Government and Legal Context - Canadian Industry Minister Melanie Joly has indicated that the companies have not sufficiently demonstrated the merger's benefits to the national economy [5]. - Chief Louie plans to urge politicians to block the deal unless there is improved consultation, referencing the United Nations Declaration on the Rights of Indigenous People, which requires free, prior, and informed consent from indigenous groups for projects affecting their lands [5][6]. - The declaration is legally recognized by both British Columbia and Canada, and the chief seeks dialogue on environmental, cultural issues, job opportunities, and revenue sharing related to the Trail operations [6].