Anglo American has defended the depth of its due diligence on its proposed $50 billion merger with Teck Resources, after the Canadian mining group sharply downgraded its copper production guidance, according to the Financial Times. The London-based miner said the revisions were consistent with its expectations and would not alter the deal’s long-term rationale.
Teck announced on Wednesday that it was cutting production forecasts for two of its major copper mines, just weeks after unveiling the merger agreement with Anglo American. The company said its Quebrada Blanca mine in Chile is now expected to produce between 170,000 and 190,000 tonnes of copper in 2025, down from a previous estimate of 210,000 to 230,000 tonnes. Teck also reduced its annual output forecasts through 2028, as well as its 2025 and 2026 projections for the Highland Valley mine in Canada.
Anglo American said Teck’s revised guidance was “broadly consistent” with the results of the “significant due diligence” undertaken before the merger announcement, emphasizing that its plans for the $50 billion deal remain unchanged. The company reaffirmed its confidence in Teck’s long-term copper portfolio, noting that short-term production challenges were anticipated during the review process.
Teck attributed the downgrade to operational constraints linked to the development of a new waste management facility at Quebrada Blanca, a project that has required periodic downtime at the site. The miner said the ongoing construction of the tailings management system will continue to affect production until at least 2027.
The production revision comes amid heightened scrutiny of the merger, which would create one of the world’s largest diversified mining groups, strengthening Anglo American’s exposure to copper—a metal seen as crucial to the global energy transition. Despite the setback, both companies appear committed to moving forward, with Anglo insisting that the operational issues identified by Teck are within the scope of what it had anticipated when the deal was agreed.
As the Financial Times reported, the updated forecasts underscore the challenges faced by major miners in balancing long-term growth ambitions with the operational realities of developing complex, capital-intensive copper projects in Latin America and beyond.
