Teck Resources' (TECK) merger with Anglo American is facing political and legal challenges from an indigenous group in Canada, Bloomberg reported Thursday, citing Osoyoos Chief Clarence Louie.

Louie said that Teck's zinc-and-lead smelter plant in Trail, British Columbia is on lands that are the responsibility of the Osoyoos Indian Band, adding that Teck's has not "meaningfully" engaged with the group about the proposed merger and investments for its Trail operations, according to the report.

The chief told Bloomberg in an interview that he will urge politicians to block the deal unless there are more effective discussions, and said in a statement that the companies' plans to expand the smelter in Trail without consulting indigenous groups is "unconscionable."

Louie also said he wants to discuss with the area's indigenous people about the potential for jobs and revenue sharing from the Trail operations and that efforts are being made for him to meet with Teck Chief Executive Jonathan Price in the coming weeks, the report said.

Teck said it has been in touch with the Osoyoos Indian Band about the proposed merger and is looking forward to discuss this further with them, according to the report.

Teck did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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