The unit, which has four mines in Elk Valley, British Columbia, has been plagued by several snags in the past three years, including supply-chain disruptions, adverse weather events, labor shortages and an outage at Elkview plant.

Teck Metals will receive an 87.5% interest in gross revenue royalty from the steelmaking coal business through the transititon period.

The miner expects the transaction to be completed in the second quarter of 2023.

(Reporting by Sourasis Bose in Bengaluru; Editing by Sherry Jacob-Phillips)