[SMM brief Review] Vale officially sells VNC project Goro nickel-cobalt ore, which is expected to continue production.

SMM12: recently, Vale issued an announcement informing its subsidiary Vale Canada Limited (VCL) that it had signed a binding put option agreement to sell it in Vale Nouvelle- Caldo é donie S.A.S. The ownership (VNC) of. Vale said today's news marked the success of discussions about VNC's transition from VCL to a continuing business and a new ownership structure with significant domestic participation.

Mark Travers (Mark Travers), executive director of Vale Base Metals, said: "the parties to the negotiations spent a lot of time and effort to find a solution for the sustainable future of VNC. Vale and everyone involved in the process, including employees and managers in the southern province of New Caledonia, the French State and VNC, are proud of the positive results of these efforts. "

The proposed transaction is scheduled to be completed in the first quarter of 2021, of which $500m of reserves will be reflected in Vale's consolidated financial statements, subject to negotiation with the VNC Labour Commission and other conditions, including approval by VNC.

According to SMM, production of the Goro nickel / cobalt mine held by VNC began in 2011 and its designed nickel wet intermediate (MHP) has an annual production capacity of 60, 000 tons of nickel. The Goro (VNC) nickel-cobalt mine of Vale will supply about 33000 tons of nickel metal in 2020 and is expected to supply about 35000 tons of nickel metal for the whole of 2021. According to SMM research, after Vale's stake in the Goro nickel-cobalt mine is taken over, the nickel wet smelting intermediate products of Goro in New Caledonia will continue to be produced next year to support the supply of nickel raw materials for new energy vehicles in the future.

Related reading: "[SMM exclusive] reversal! Vale originally expected to stop production of nickel wet intermediate project Goro ushered in a turnaround. "