Top Nickel Miner Vale Turns Page on 14-Year New Caledonia Foray – by James Attwood (Bloomberg News – March 31, 2021)

https://www.bnnbloomberg.ca

(Bloomberg) — Vale SA, 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 Inc. 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.

For the rest of this article: https://www.bnnbloomberg.ca/top-nickel-miner-vale-turns-page-on-14-year-new-caledonia-foray-1.1584802

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