Anglo American and Teck: Boosting Global Procurement Growth

Anglo American plc and Teck Resources Limited confirm an agreement to merge, creating Anglo Teck, a new force in global mining.

The merged group will be one of the world’s top five copper producers, reinforcing supply chains for critical minerals used across industries.

The move brings together two well-established mining companies with shared commitments to sustainable practices and supply efficiency.

The group will be headquartered in Canada, with operations also in the UK and South Africa, ensuring influence across three strategic mining regions.

Consolidating resources for procurement strength

Anglo American is a British multinational recognised as the world’s largest producer of platinum and a key supplier of copper, diamonds, nickel, iron ore, polyhalite and steelmaking coal.

Its metals support construction, technology and energy transition projects, all of which require stable procurement networks.

Teck is a Canadian miner with strong assets in copper and zinc. The two companies are combining their strengths to build a procurement strategy capable of delivering secure supply for global partners.

The combined copper portfolio includes six assets across Canada, the United States, Latin America and Southern Africa, alongside both brownfield and greenfield developments.

Jonathan Price, Chief Executive Officer at Teck, says: "This merger of two highly-complementary portfolios will create a leading global critical minerals champion headquartered in Canada – a top five global copper producer with exceptional mining and processing assets located across Canada, the United States, Latin America and Southern Africa.

"It is a natural progression of our strategy and portfolio simplification, which created a platform to enable exactly this sort of transformative transaction. Bringing together our world-class copper assets, premium iron ore and zinc operations and an outstanding pipeline of high-quality growth projects provides enormous resiliency and optionality."

This combination gives procurement teams access to broader volumes of copper and critical minerals, essential for buyers managing rising demand from renewable energy, construction and electronics.

The partnership also introduces operational flexibility, with ore extracted at one site able to be processed using infrastructure from another, improving efficiency and reducing costs.

Supporting procurement expansion

Financially, the merger creates a stronger base for global contracts and long-term procurement deals. Anglo American reported an underlying EBITDA of US$8.46bn in 2024, while Teck reported an adjusted EBITDA of US$2.12bn.

Together, Anglo Teck projects US$800m in annual pre-tax cost savings by year four, with 80% of that achieved by the second year.

Through joint work at Chilean sites Collahuasi and Quebrada Blanca, Anglo Teck expects to deliver US$1.4bn of underlying EBITDA, strengthening its supply to customers worldwide.

The scale of this output will allow procurement teams to lock in more reliable volumes at competitive rates.

Jonathan notes: "This transaction will create significant economic opportunity in Canada, while positioning Anglo Teck to deliver sustainable, long-term value for shareholders and all stakeholders."

Duncan Wanblad, Chief Executive Officer at Anglo American, adds: "We are unlocking outstanding value both in the near and longer term – forming a global critical minerals champion with the focus, agility, capabilities and culture that have characterised both companies for so long."

The company’s global office network will make procurement easier for buyers across multiple continents, while enabling Anglo Teck to align with national critical minerals strategies in the UK, South Africa and beyond.

Supply chain growth

The merger is designed to optimise supply chain efficiency. By integrating Teck’s infrastructure at Quebrada Blanca with higher-grade ore from Anglo American’s Collahuasi site, procurement teams can expect enhanced reliability in copper flows.

This supports industries dependent on steady access to metals, from automotive manufacturers to renewable energy providers.

Duncan explains: "Having made such significant progress with Anglo American’s portfolio transformation, which has already added substantial value for our shareholders over the past year, now is the optimal time to take this next strategic step to accelerate our growth."

"We have a unique opportunity to bring together two highly-regarded mining companies whose portfolios and capabilities are deeply complementary, while also sharing a common set of values.

"We are all committed to preserving and building on the proud heritage of both companies, both in Canada, as Anglo Teck’s natural headquarters, and in South Africa where our commitment to investment and national priorities endure.

"Together, we are propelling Anglo Teck to the forefront of our industry in terms of value accretive growth in responsibly produced critical minerals."

For procurement professionals, Anglo Teck’s formation signals larger volumes, more consistent delivery and a wider product base that stretches beyond copper to premium iron ore, zinc and crop nutrients.

This merger not only strengthens the global supply of critical minerals but also reshapes procurement opportunities across multiple industries.