July 4 (Reuters) - The Canadian government has approved

Glencore's ( GLCNF ) $6.93 billion acquisition of miner Teck

Resources' ( TECK ) steelmaking coal unit with strict

conditions to preserve jobs, the country's industry minister

said on Thursday.

To secure the approval, Glencore ( GLCNF ) has agreed to maintain

Canadian headquarters for Elk Valley Resources (EVR) for at

least 10 years, ensure a majority of the directors of EVR are

Canadians, and maintain significant employment levels at EVR for

no less than five years, the ministry said.

In a separate statement, Teck said it would use the deal

proceeds to buy back up to C$2.75 billion ($2 billion) of its

Class B subordinate voting shares, reduce its debt by up to $2

billion and fund near-term copper growth.

The miner said it expects the deal to close by July 11.

"Today I approved under strict conditions a much narrower

transaction whereby Glencore ( GLCNF ) will acquire Teck Resources ( TECK )

metallurgical coal business," Industry Minister

Francois-Philippe Champagne said in a statement.

He flagged that going forward Canada will set a high bar on

net-benefit reviews when assessing mergers and acquisitions of

important Canadian companies in the critical minerals space.

"Henceforth, such transactions will only be found of net

benefit in the most exceptional of circumstances," Champagne

said.

Glencore ( GLCNF ) did not immediately respond to an email query from

Reuters.

In November, a Glencore ( GLCNF )-led consortium sealed one of the

mining sector's biggest deals, agreeing to acquire Teck

Resources ( TECK ) steelmaking coal unit for $9 billion.

Swiss miner Glencore ( GLCNF ) will get 77% of the business in a $6.9

billion cash deal, while 20% will go to Japan's Nippon Steel ( NISTF )

, which already holds a 2.5% stake.

South Korea's POSCO will swap a stake in two of

Teck's coal operations for 3% in the steelmaking coal business

Elk Valley Resources.

($1 = 1.3610 Canadian dollars)