Anglo company's technology agreement could encounter resistance from indigenous groups regarding their smelter blueprint
In a significant development, the Osoyoos Indian Band has vowed to challenge the proposed merger between Teck Resources Ltd. and Anglo American Plc, unless the companies consult with them over expansion plans for a zinc and lead smelter in southern British Columbia. The smelter in Trail, currently operated by Teck, is located on lands that are the responsibility of the Osoyoos Indian Band, according to Chief Clarence Louie. The proposed merger, if it proceeds, would create a mining giant worth more than $50 billion. As part of the transaction, the companies have committed to invest up to C$750 million in the Trail operations to explore ways to add copper processing and expand output for germanium and other strategic metals. However, Chief Louie has stated that Teck has not meaningfully consulted with the group about its proposed merger and investments for the Trail operations. He has also cited historic complaints about pollution from the smelter, and has expressed a desire to discuss involvement by the area's Indigenous people on environmental and cultural issues, as well as potential jobs and revenue sharing related to the Trail operations. The Canadian government still has the ability to block the proposed transaction under the rules of the Investment Canada Act. Canadian Industry Minister Melanie Joly has stated that the companies have not yet done enough to demonstrate the deal's advantages to the nation's economy. The "net benefit test" allows the minister to judge any deal based on a number of factors, including the impact on jobs, exports, technological development, and "Canada's ability to compete in world markets." The Osoyoos band is not explicitly named in the provided search results as the Indigenous group planning political and legal challenges against the Teck-Anglo merger. However, Louie has indicated that the group is willing to use legal options to oppose the merger if necessary. He has also scheduled a meeting with Teck CEO Jonathan Price within weeks, following a previous meeting cancellation. Teck has been in touch with the Osoyoos Indian Band about the proposed merger and looks forward to further discussions. An Anglo spokesperson echoed Teck's comments, stating that the companies are committed to engaging meaningfully with Indigenous governments for significant projects, including Trail operations. Osoyoos Chief Louie has stated that he will ask politicians to obstruct the deal unless there's better consultation, citing the United Nations Declaration on the Rights of Indigenous People. This declaration, which was legally adopted by BC and Canada, outlines the need for free, prior, and informed consent from Indigenous groups for measures affecting their lands. The proposed transaction between Teck and Anglo is expected to be completed within 12 to 18 months. It remains to be seen how this development will unfold, and whether the companies will be able to address the concerns of the Osoyoos Indian Band and other Indigenous groups in the region.
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