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Could Teck Resources be divesting their coal assets for buying a stake in Citronen?
A 10% stake in Teck's coal business worth $8billion is circa $800mil USD
Teck is wanting to transition into green minerals and getting out of fossil fuel

If this divestment occurs, what could Teck use the freed up cash on as they would need to allocate their capital to generate a return rather than just hoarding a cash pile.

Teck Resources Ltd.is exploring the sale of a minority stake in its metallurgical coal business as it seeks to take advantage of surging prices for the commodity, people familiar with the matter said.

The Canadian miner has approached parties including smaller rivalArch Resources Inc.to gauge their interest in buying a stake of 10% or more in the business, the people said, asking not to be identified as the matter is private.

Teck’s coal business could be valued at about $8 billion, according to the people. Risingdemandfor the commodity could push that figure higher, the people said. Shares of Teck rose 1.8% at 12:45 p.m. in Toronto after declining as much as 0.8% earlier.

Deliberations for a stake sale are in the early stages and there is no guarantee that a deal could be reached, the people said. A representative for Teck Resources declined to comment, while a spokesperson for Arch Resources didn’t immediately respond to requests for comment.

Teck Resources has been working with anadviseron options for the coal business, including a sale or spinoff, Bloomberg News reported in September.

Large commodity producers are under increasing pressure to cut back on fossil fuels in response to investor concerns over climate change. However, coal prices have surged in recent months as an economic recovery from the coronavirus pandemic has driven up demand for the fuel around the world

Metallurgical coal is a key raw materials used in steelmaking, which remains one of the most polluting industries on the planet and faces significant pressure from policy makers to clean up its act.

Teck produced more than 21 million metric tons of steelmaking coal in 2020 from four locations in western Canada. The business accounted for 35% of the company’s gross profit, according to itswebsite.