Billionaire Robert Friedland has become the latest prominent figure in the Canadian mining industry to come out in defence of Teck Resources (TSX: TECK.A, TECK.B) (NYSE: TECK), which is facing a hostile $23.1bn takeover bid from Swiss commodities giant Glencore (LON: GEN).聽
Friedland, founder and executive chairman of Ivanhoe Mines (TSX: IVN), warned late on Monday that investors should not take lightly the attempted takeover of a Canadian 鈥渃hampion.鈥�
鈥淟osing another quintessential Canadian support mechanism to multinationals could corporatize and hollow out our unique ecosystem that has so successfully explored our vast landmass,鈥� .
Friedland highlighted Teck鈥檚 history of supporting Canadian junior mining and exploration companies, including Diamond Field Resources (known today as DFR Gold) 鈥� the richest nickel discovery in the world in the last 50 years.
The magnate, who made his fortune from the Voisey鈥檚 Bay nickel project in Canada in the 1990s, said that Glencore鈥檚 offer undervalues Teck and its assets, and noted that many investors, including himself, would be interested in buying the company or partnering with it post-split.聽
He urged the Canadian government and regulators to protect Teck from 鈥渇oreign predators鈥� and to ensure that strategic resources, particularly copper and zinc, remain in local hands.
Friedland鈥檚 recommendations come a day after Teck chairman emeritus,聽Norman聽Keevil, said he wasn鈥檛 against deals with other companies, provided they were with 鈥渢he right partner鈥� and 鈥渙n the right terms鈥� after the company splits its base metals and coal businesses.
72-year-old Friedland has long been warning about the need to secure copper supplies. He believes the orange metal is so crucial in electrifying the global economy that finding enough of it has become a national security issue.
His latests endeavours have all been focused on finding more of the metal and he became involved in some of the biggest recent copper discoveries, including the giant Oyu Tolgoi mine in Mongolia 补苍诲听Kamoa-Kakula聽in the Democratic Republic of Congo, which is expected to become聽the world鈥檚 second-largest copper mine and also the one with the highest grades among major operations.
Friedland said he had 鈥済reat respect鈥� for Glencore as one of the world鈥檚 leading metal trading houses and mining companies, but noted the company and Teck had 鈥渧astly different cultures鈥� when it comes to exploration, mine development, and mining operations.
Michael Goehring, president and CEO of the Mining Association of British Columbia (MABC), also voiced on Monday his concerns about the eventual takeover of Teck.
鈥淭he potential loss of BC鈥檚 long-standing mining champion and head office jobs in Vancouver is not in the best interests of British Columbians,鈥� Goehring said. 鈥淲e should be growing more local head office jobs in Vancouver, anchored by companies like Teck Resources, rather than see them go elsewhere.鈥�
He called on the federal government to review the deal as the future of a 鈥渕ajor Canadian critical minerals producer鈥� is on the line.
Ross Beaty, founder and chair emeritus of Pan American Silver (TSX, NYSE: PAAS) and chairman of Equinox Gold (TSX: TSE: EQX), on the topic, saying that 鈥渋t would be foolish to entertain proposals from a single interested party prior to separation.鈥�
Teck chief executive officer, Jonathan Price, was supposed to participate in Tuesday鈥檚 keynote discussion panel at CRU鈥檚 World Copper Conference, being held in Santiago, Chile. He was replaced late in the planning process with chief operating officer Harry 鈥淩ed鈥� Conger, as he chose to stay in Canada to focus on engaging with investors.
The miner鈥檚 shareholders are scheduled to vote on April 26 on the company鈥檚 proposal to separate its base metals business from the coal unit.