Canadian mining company Teck Resources is reinforcing its earlier proposal to split its business into two separate entities, saying it is the only optimal option to maximise its shareholder value.

Earlier this month, the Teck Board of Directors unanimously rejected the $22.5bn unsolicited offer from Swiss commodity trading and mining company Glencore.

Glencore’s proposal included a demerger of the combined thermal and metallurgical coal, along with the ferro-alloy operations of the merged company into a new publicly traded company.

The remaining entity would hold Glencore’s and Teck’s base metals operations along with Glencore’s oil and other commodity trading business, except coal trading and marketing.

Teck proposed an alternative separation plan, which will see the creation of two Canadian mining companies, which would provide a superior value for all Teck shareholders.

The company’s separation plan suggests the creation of Teck Metals, a producer of energy transition metals, and Elk Valley Resources (EVR), a steelmaking coal business.

Teck said that the separation will create several opportunities for both Teck Metals and EVR and provide significant value to shareholders.

Also, Glencore’s proposal would reduce Teck shareholders’ exposure to copper and introduce exposure to thermal coal and oil trading.

The company said that Glencore’s proposal would expose its shareholders to significant jurisdictional, ESG and execution risk and called it a non-starter.

Teck, in its statement, said: “Voting for the pending separation is the only option to unlock Teck’s full value potential. The choice is clear: either vote for a separation that creates two companies with a broad spectrum of opportunities to maximise value, or vote to maintain the status quo.”

Barclays Capital Canada and Ardea Partners served as financial advisors, while Stikeman Elliott and Paul, Weiss, Rifkind, Wharton & Garrison as legal advisors to Teck on the transaction.

BMO Capital Markets, Goldman Sachs & Co., and Origin Merchant Partners served as financial advisors, while Blake, Cassels & Graydon and Sullivan & Cromwell as legal advisors to the Special Committee.