Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Brazilian miner Vale has completed the sale of its New Caledonia(VNC) operation to a consortium led by Trafigura for $1.1bn. 


The consortium called Prony Resources includes the Goro nickel mine and a smelter. The company’s subsidiary Vale Canada will invest $555 mn while the French government plans to offer $585mn towards total investment. The company has yet to disclose the full terms of the VNC deal.


Vale will continue to have a long-term nickel supply based on a proportion of total production, the company noted in a statement on Wednesday.


VNC’s Goro mine has a production capacity of 60,000mt per year, however, design flaws and commissioning issues have hindered its full potential according to media reports.

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