Teck Resources shareholders have requested an increase on the $22.5bn takeover bid offered by Glencore.

Teck’s shareholders claimed on Wednesday that Glencore’s sum did not match the company’s own restructuring plans. It plans to spin off its steel-making coal unit, instead turning its focus to copper and minor metal production in a bid to ensure a viable future.

The Canadian zinc and copper miner had already rejected and an initial bid twice. Glencore Chief Executive Gary Nagle is due to meet with Teck shareholders on Thursday to lobby them to support the deal.

A Glencore statement claimed on Tuesday that the company had altered the bid, but Teck’s board said it was “largely unchanged” and did not “provide an increase in the overall value to be received by Teck shareholders”. The $22.5 billion all-share takeover bid was set to also include $8.2bn in cash.

The proposed new company would be called GlenTeck, should the acquisition take place.

Todd Kapala of Addenda Capital Inc, which holds about 710,000 Teck shares, told Reuters: “The cash component is an improvement, but a higher bid would be required for me to consider changing my vote”.

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By GlobalData

Teck claims that the proposed bid does not recognise the company’s future potential as a major copper producer. Teck owns a number of copper deposits that have not yet been developed into mines.

Glencore has called on Teck to postpone a shareholder vote due to take place on 26th April on the proposed spinoff plan.

Pricing future copper demand into Teck Resources deal

Higher copper demand and supply change challenges have led to a deficit in the metal throughout 2023. Protests in Peru have led to reduced production during that past few months.

Copper is used frequently in electric vehicle manufacturing. According to the International Energy Agency, on average electric cars require double the amount of copper than fossil-powered cars for their production.

Copper has also been used in electronics for decades. Electrification is projected to increase annual copper demand to 36.6 million tonnes by 2031, according to McKinsey. The pathways to production for even 20% of this total remain to be found.

Teck owns four operating copper mines, in addition to undeveloped deposits. The company claims to hold approximately 33 million tonnes of copper in reserves and resources. In 2022, Teck’s copper mines produced 270,000 tonnes of copper.