China Demands Copper Supply Guarantees for Anglo American Teck Merger Approval

China’s antitrust regulator has asked Anglo American to commit to a steady flow of copper concentrate into China as a condition for approving its proposed $54 billion merger with Canada’s Teck Resources, according to reporting from Reuters. The demand highlights a severe feedstock shortage gripping Chinese smelters, which refine up to 60 percent of the world’s copper cathodes despite mining a much smaller fraction of the global supply.

China State Administration for Market Regulation Demands Concentrate Commitments

Three people familiar with the talks told Reuters that the State Administration for Market Regulation is negotiating behavioral remedies rather than pushing for asset sales at this stage. The antitrust agency has asked for assurances on copper concentrate supply that include volumes sold through traders, not just direct sales from the miner. Chinese smelters provided feedback that shaped these demands as they compete for raw material during what sources described as the worst feedstock shortage in decades.

Refined copper output in China is projected to grow this year at its slowest pace since at least 2000. At the same time, falling prices for the byproduct sulphuric acid have squeezed smelter profitability. Reuters reported that cutting off unrefined volumes from the open market could accelerate the closure of Western processing facilities and push the industry toward index-linked spot pricing instead of traditional annual benchmark pricing.

Anglo American and Teck Resources Pursue March 2027 Deal Closure

The merger was announced in 2025 and has already secured approval from every other jurisdiction where the companies operate. Both Anglo American and Teck Resources expect the transaction to close by March 2027, falling inside an 18-month window from the initial announcement. The combined entity would control approximately 5 percent of global copper supply, sitting well below the 10 to 15 percent thresholds that typically trigger a forced divestiture of assets like mines.

Anglo American declined to provide specific terms but acknowledged the ongoing discussions through a corporate statement. We are making good progress towards completion and are working constructively with the Chinese regulator, SAMR, through its structured review process, an Anglo American spokesperson said, as reported by Reuters. Teck Resources declined to comment on the regulatory process, and the State Administration for Market Regulation did not immediately respond to a request for comment.

Critical Minerals Scrutiny Grows Across Global Mining Jurisdictions

The negotiations in China mirror regulatory friction elsewhere in the mining sector. Reuters noted that the European Commission recently issued an antitrust warning to Hong Kong-listed MMG regarding Anglo’s sale of its nickel assets, expressing concern that the deal might divert ferronickel supplies away from European markets. MMG responded by proposing long-term European supply commitments.

Executives at major mining houses including Glencore, Anglo American, and Rio Tinto have pointed out that antitrust reviews and national interest considerations are playing a much larger role in critical mineral transactions. Resource-hungry nations are increasingly utilizing merger oversight to secure materials essential for their needs, shifting the focus of competition authorities from simple market share percentages to physical supply security.