- Write by:
-
Friday, April 2, 2021 - 2:03:35 PM
-
733 Visit
-
Print
Mining News Pro - Vale, the biggest producer of mined nickel, closed a deal to divest its underperforming New Caledonian mine to a group that includes the operation’s managers and workers.
The divestment will allow operations to continue and gives Vale the right to a portion of output amid growing demand for the battery metal, Rio de Janeiro-based Vale said in a statement Wednesday. Tesla will support the operation through a “technical and industrial partnership” with the consortium, called Prony Resources.
Vale had intended to mothball the facility if the deal fell through after a string of financial and operational setbacks. Vale picked up the Goro project as part of its 2007 acquisition of Inco. It was brought online late and over-budget in 2010 and never reached more than 70% of capacity, showing the difficulties producing nickel from laterite deposits using the high pressure acid leach process. Vale will focus on base metal assets in Brazil, Canada and Indonesia.
Protests by independence activists in New Caledonia had blocked access to facilities, disrupting processing. Operations recommenced this week with the restart of nickel production expected in mid April, Prony said in a separate statement.
The consortium, which includes Singapore-based Trafigura and is supported by New Caledonian and French authorities, is taking a majority interest.
“Vale’s intention since the beginning of the divestment process was to withdraw from New Caledonia in an orderly and responsible manner,” the company said. “This deal accomplishes that.”
The exit comes with a cost. The transaction provides a financial package of $1.1-billion, of which Vale Canada will contribute $555-million to support the continuity of operations. The financing for a sustainable development pact will also be provided by Vale, it said, without elaborating.
The deal gives Trafigura a 19% stake and an offtake agreement. Investment firm Agio Global also has a minority interest, Prony said, without giving the size.
Vale had a Goro sale arrangement in place with New Century Resources, but the Melbourne-based firm said in September that it was unable to generate a suitable funding package and equity structure.
Short Link:
https://www.miningnews.ir/En/News/611999
Indonesia’s outgoing government has added 16 programs to its list of strategic projects that will receive state support, ...
South African diversified miner Sibanye Stillwater is discussing with lenders to temporarily lift limits on borrowings, ...
The Philippines said on Friday it aimed to add three more processing plants in the effort to develop a downstream ...
Canada’s mining industry is pushing for an carveout to the federal government’s proposed increase to capital gains ...
Australia will spend A$566 million ($373 million) over the coming decade to map out resource deposits with a focus on ...
Indonesia’s nickel reserves are sufficient for expanded processing operations, an investment ministry official said on ...
The US and the Philippines are in discussions over ways to prevent China from dominating nickel processing in the ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Brazilian miner Vale SA sees no impact from BHP Group’s bid for Anglo American on the latter’s Minas-Rio project, its ...
No comments have been posted yet ...