Teck CEO Don LindsayLYLE STAFFORD
Few executives know Asia the way Don Lindsay does.
The CEO of diversified mining company Teck Resources Ltd. travels to the region every quarter to see his company's coal, copper and zinc drive the industrialization of countries such as China, the world's largest steel maker. He has some powerful friends: a Chinese state-owned investor, a large Japanese voting shareholder, and he has watched China's growth boost demand at Teck's mines in the United States, Canada, Peru and Chile.
He has also observed some potential in the region's underdeveloped capital markets – especially in China. Mr. Lindsay said that while the question of improved efficiency in capital markets doesn't directly effect Teck, he could see some advantages to listing on the Shanghai Stock Exchange once rules are changed to permit it. He called it a long-term objective.
When China's currency controls are relaxed and the yuan becomes fully convertible, it might make sense, Mr. Lindsay said. He brings a wealth of understanding, having formerly been president of CIBC World Markets Inc., and head of both investment and corporate banking as well as the Asia Pacific region.
And he is sure to be tapped in when that happens since Lou Jiwei, the former chairman of Teck's state-owned investor China Investment Corp., became China's finance minister in March.
Indeed, the only reason Mr. Lindsay doesn't appear on the list of speakers at the Canada-Asia 2013 conference, which starts Tuesday in Teck's hometown of Vancouver, is because he'll be in China and Japan.
Scanning the conference's agenda, Mr. Lindsay sees a lot of big names, which is good for event attendees, because relationships still count for a lot in Asia. No amount of video conferencing can replace a face-to-face connection, he said. Trust matters more than ever.
He saw evidence of this in 2009, after sovereign wealth fund CIC made a $1.5-billion investment in Teck. "All of a sudden a flood of people were calling asking to be introduced to people at CIC," Mr. Lindsay said. But even after the relationships are solidified ("one day, you're in – you don't know exactly when it occurs") it's still important to visit often.
It has been a bumpy year, though. Falling prices for metallurgical coal and copper caused by global market volatility have depressed the company's earnings. For Teck's shares, which are down 26 per cent from January highs, but up 11 per cent from April's lows, the wild ride is likely to continue.
But Mr. Lindsay is patient. "The company is in great shape, but the world is fragile," he said. Teck had a cash balance of $2.95-billion at the end of March, but while Mr. Lindsay said he is always looking for opportunities to use it, he doesn't sound too willing to part with the cushion.