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Glencore-Teck deal reveals the irony of coal: Profitable and vital, yet endlessly shunned

From the MacDonald Laurier Institute
By Heather Exner-Pirot
Coal is not going anywhere, and while some countries will benefit, Canada will not be among them
In many ways, the US$8.9-billion deal Glencore has struck for Teck Resources’ coal assets represents an elegant split that plays to each company’s strengths.
Teck, the Canadian miner, can now focus on its core base metals business, in particular copper, as it bets on strong returns in the years to come. Swiss commodities giant Glencore can build up its coal empire, adding the steelmaking coal assets to its vast thermal coal trade.
But the deal also reveals how coal has its own set of rules. Despite how profitable and strategic Teck’s coal resources are, they will soon come under foreign control. It is hard to imagine this unfolding the same way for any other commodity.
Coal is an essential, ubiquitous material. It is the workhorse of the global power sector, accounting for more than a third of global electricity generation. And it is indispensable in steelmaking. The burning of coke, a coal-based fuel, produces the carbon monoxide needed to convert iron ore into a liquid, alongside high temperatures. The majority of steel in the world is made with coking coal, also known as metallurgical coal.
Owing to its carbon intensity, it has a terrible reputation. Investors and shareholders, not to mention Western governments, shun it. Teck’s intention to spin off its coal business is linked to shareholder desires to see a decoupling of its metals and coal businesses out of environmental concerns, which have weighed on its valuation. Even as it pursues Teck’s coal assets, Glencore is doing the same; it plans to separate its metals and coal businesses within two years and sought Teck’s premium steelmaking coal to make its other coal holdings more palatable.
But shareholder distaste for coal is increasingly divorced from its economics. Coal is still highly profitable. Last year witnessed high prices and record demand, in part owing to the fallout from the Russian invasion of Ukraine. Both Teck and Glencore benefited greatly. Teck earned record profits of $4.9-billion, with coal accounting for 75 per cent of that. Glencore’s core profit rose 60 per cent to a record US$34.1-billion, more than half of which came from coal production.
Teck’s steelmaking coal assets in B.C.’s Elk Valley are world-class – high-quality, with decades of reserves and a low carbon intensity relative to other deposits. Glencore’s deal for them will see it partnering with Japan’s Nippon Steel and South Korea’s PISCO, who will take minority stakes. The fact that the deal includes two of the world’s biggest steel producers is evidence that these coal assets have long-term customers. This deal is not about Teck unloading a bad asset; it is about removing the ESG noose around its neck.
That’s poor justification for letting such vital assets end up in foreign hands. Yet the federal government will likely let the deal happen.
Federal scrutiny of foreign investment and takeovers in our domestic mining sector has grown of late, as the need for friendly sources of critical minerals grows. As The Globe and Mail reported last month, Canadian firms have mainly been the targets, rather than pursuers, of acquisitions in the sector in the past decade. Canada has toughened the Investment Canada Act as a result.
While the Teck-Glencore deal will raise similar concerns, it has been designed to skirt them. Teck’s news release could have been written by Ottawa. It aligns with the federal government’s recent Critical Minerals Strategy and commits to remaining a Canadian-based miner focused on “future-oriented metals,” “an electric vehicle battery recycling facility” and support for “junior Canadian mining and exploration companies.” It also preserves B.C.’s coal mining jobs and revenues.
There’s a parallel universe where a G7 country protects its most exquisite metallurgical coal deposit, required to produce a critical material for any advanced economy, energy system or military. That introduces policy to reshore and build up its domestic steel industry in an era of growing geopolitical turbulence.
The world in 2023 is not this place. And Canada is not that G7 country. Indeed, the world view of the current federal and B.C. governments sees the decline of coal as both imminent and necessary. There is no way they will make the argument that the material is a strategic resource that must remain under Canadian ownership.
But coal is not going anywhere. Some countries will benefit, economically and strategically, from controlling it. Canada will not be among them.
Heather Exner-Pirot is the director of energy, natural resources and environment at the Macdonald-Laurier Institute.
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Canada Needs A Real Plan To Compete Globally

From the Frontier Centre for Public Policy
Ottawa’s ideological policies have left Canada vulnerable. Strategic action is needed now
As Canada navigates an increasingly complex geopolitical landscape, the next federal government must move beyond reflexive anti—Americanism regardless of its political leanings. Instead, Canada should prioritize national interests while avoiding unnecessary conflict and subservience.
The notion that Canada can stand alone is as misguided as the idea that it is only an economic appendage of the United States. Both perspectives have influenced policy in Ottawa at different times, leading to mistakes.
Rather than engaging in futile name-calling or trade disputes, Canada must take strategic steps to reinforce its autonomy. This approach requires a pragmatic view rooted in Realpolitik—recognizing global realities, mitigating risks, governing for the whole country, and seizing opportunities while abandoning failed ideologies.
However, if Washington continues to pursue protectionist measures, Canada must find effective ways to counteract the weakened position Ottawa has placed the country in over the past decade.
One key strategy is diversifying trade relationships, notably by expanding economic ties with emerging markets such as India and Southeast Asia. This will require repairing Canada’s strained relationship with India and regaining political respect in China.
Unlike past Liberal trade missions, which often prioritized ideological talking points over substance, Canada must negotiate deals that protect domestic industries rather than turning summits into platforms for moral posturing.
A more effective approach would be strengthening partnerships with countries that value Canadian resources instead of vilifying them under misguided environmental policies. Expand LNG exports to Europe and Asia and leverage Canada’s critical minerals sector to establish reciprocal supply chains with non-Western economies, reducing economic reliance on the U.S.
Decades of complacency have left Canada vulnerable to American influence over its resource sector. Foreign-funded environmental groups have weakened domestic energy production, handing U.S. industries a strategic advantage. Ottawa must counter this by ensuring Canadian energy is developed at home rather than allowing suppressed domestic production to benefit foreign competitors.
Likewise, a robust industrial policy—prioritizing mining, manufacturing, and agricultural resilience—could reduce dependence on U.S. and Chinese imports. This does not mean adopting European-style subsidies but rather eliminating excessive regulations that make Canadian businesses uncompetitive, including costly domestic carbon tariffs.
Another key vulnerability is Canada’s growing military dependence on the U.S. through NORAD and NATO. While alliances are essential, decades of underfunding and neglect have turned the Canadian Armed Forces into little more than a symbolic force. Canada must learn self-reliance and commit to serious investment in defence.
Increasing defence spending—not to meet NATO targets but to build deterrence—is essential. Ottawa must reform its outdated procurement processes and develop a domestic defence manufacturing base, reducing reliance on foreign arms deals.
Canada’s vast Arctic is also at risk. Without continued investment in northern sovereignty, Ottawa may find itself locked out of its own backyard by more assertive global powers.
For too long, Canada has relied on an economic model that prioritizes federal redistribution over wealth creation and productivity. A competitive tax regime—one that attracts investment instead of punishing success—is essential.
A capital gains tax hike might satisfy activists in Toronto, but it does little to attract investments and encourage economic growth. Likewise, Ottawa must abandon ideological green policies that threaten agri-food production, whether by overregulating farmers or ranchers. At the same time, it must address inefficiencies in supply management once and for all. Canada must be able to feed a growing world without unnecessary bureaucratic obstacles.
Ottawa must also create an environment where businesses can innovate and grow without excessive regulatory burdens. This includes eliminating interprovincial trade barriers that stifle commerce.
Similarly, Canada’s tech sector, long hindered by predatory regulations, should be freed from excessive government interference. Instead of suffocating innovation with compliance mandates, Ottawa should focus on deregulation while implementing stronger security measures for foreign tech firms operating in Canada.
Perhaps Ottawa’s greatest mistake is its knee-jerk reactions to American policies, made without a coherent long-term strategy. Performative trade disputes with Washington and symbolic grandstanding in multilateral organizations do little to advance Canada’s interests.
Instead of reacting emotionally, Canada must take proactive steps to secure its economic, resource, and defence future. That is the role of a responsible government.
History’s best strategists understood that one should never fight an opponent’s war but instead dictate the terms of engagement. Canada’s future does not depend on reacting to Washington’s policies—these are calculated strategies, not whims. Instead, Canada’s success will be determined by its ability to act in the interests of citizens in all regions of the country, and seeing the world as it is rather than how ideological narratives wish it to be.
Marco Navarro-Génie is the vice president of research at the Frontier Centre for Public Policy. With Barry Cooper, he is co-author of Canada’s COVID: The Story of a Pandemic Moral Panic (2023).
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Alleged Human Traffickers arrested in Red Deer, Montreal, and Edmonton

Human trafficking suspect arrested in Red Deer, July 2024
From Alert, the Alberta Law Enforcement Response Team
Three human traffickers arrested in Project Endgame
Three men have been arrested and stand accused of running a human trafficking operation that stretched across Canada; operating throughout Alberta, British Columbia, Saskatchewan, and Quebec.
Project Endgame was a year-long investigation led by ALERT’s Human Trafficking unit, and also relied on the assistance of the Edmonton Police Service, RCMP, and the Quebec joint forces Anti-Pimping team known as EILP.
Arrests and search warrants had taken place in Edmonton, Montreal, and Red Deer. A total of 23 charges related to human trafficking offences have been laid against Clyde Elien-Abbot, 31, Kevin Dorcelus-Cetoute, 31, and Jean Rodnil Dubois, 31. Elien-Abbot was arrested on January 31, 2025 in Edmonton, while the other two accused were arrested on July 23, 2024.
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