Brazilian miner Vale has signed a binding agreement with a consortium to sell its Goro nickel and cobalt mine New Caledonia, for a valuation of $500mn.
Vale disclosed that it intends to close the deal by Q1 2021. The consortium, called Prony Resources, is led by Vale New Caledonia management and employees, and supported by the Caledonian and French authorities with Trafigura as a minority shareholder, Vale pointed out. The deal awaits approval from Caledonian authorities and the French State.
With global nickel output predicted to decline by 7.4pc in 2020, the vast deposits at the mine in New Caledonia may be one of the best bets for nickel mining. The Goro mine is estimated to contain 5.92mn mt of nickel. Notably, it has been inactive since Oct 9.