Brazilian miner Vale has entered a 30-day exclusivity period with a consortium of buyers for its New Caledonia nickel and cobalt mine operations which have been idle since Sep 9.
According to a Nov 5 statement from the Brazilian conglomerate, Vale Canada is now negotiating the final details and requirements of the sale with a group, which includes base metal trader Trafigura as a minority stakeholder, along with the New Caledonian and French governments.
With global nickel output predicted to decline by 7.4pc in 2020, the vast deposits at the Goro mine in New Caledonia may be one of the best sources for nickel. The metal’s demand is expected to be robust in the short-term, thanks to its use in electric vehicle batteries. The mine is estimated to contain 5.92mn mt of nickel, which can be milled from the 370mn mt nickel ore deposits.