New Century in talks with Brazil’s Vale over nickel-cobalt mine sale – by Nick Toscano (Sydney Morning Herald – May 26, 2020)

https://www.smh.com.au/

Australia’s New Century Resources is in exclusive talks with Brazilian mining giant Vale to take over its troubled nickel and cobalt mine in New Caledonia under a proposed deal that contains a financial contribution from Vale and possible support from the French government.

New Century chief executive Patrick Walta said the company had entered into a 60-day exclusivity period to negotiate the acquisition of a 95 per cent ownership stake in Vale’s Goro mine in the south-west Pacific nation, which has been plagued by problems, delays and cost blow-outs for Vale since mining operations began there in 2011.

Under the proposed deal, Melbourne-based New Century would be effectively paid to take ownership of the Goro mine, with the value of financial contributions from Vale and the potential forgiveness of debts from the French state estimated to be in the vicinity of $1 billion.

Mr Walta would not discuss the terms of the confidential deal but told The Age and The Sydney Morning Herald he was confident in the prospects of the mine, especially once the asset was simplified following the removal of the on-site nickel oxide refinery, the cause of some of the mine’s troubles.

For the rest of this article: https://www.smh.com.au/business/companies/new-century-in-talks-with-brazil-s-vale-over-nickel-cobalt-mine-sale-20200526-p54wfe.html

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