Published: December 6, 2018 |

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Brazilian miner Vale SA, the world’s top nickel producer, plans to invest USD 500 million in its struggling New Caledonia nickel mine on its own after previously vowing to find a partner for the venture. Vale’s decision to invest in the project alone, from 2019 to 2022, reflects the company’s new understanding of the importance of an expected surge in electric vehicle (EV) sales. Chief Executive Fabio Schvartsman said, “The decision to continue on our own was made because New Caledonia could be a very important part of strategy to supply nickel especially given the EV revolution. We thought initially that we could have a partner but it was in a moment when we had no clarity on the incoming EV revolution.”

Vale also said it had reached a deal with global trader and miner Glencore to jointly explore Vale’s Victor mine for copper and nickel and Glencore’s Nickel Rim South mines, both based in Canada, citing reduced costs and capital expenses thanks to the venture.

Over-budget and years late when it started up in 2010, the New Caledonia project, located on a Pacific island, accumulated nearly USD 1.3 billion in losses from 2014 to 2016.

Vale on Tuesday lowered 2019 output forecasts for nickel, also used to make stainless steel, to 244,000 tonnes of nickel next year, below the 263,000 tonnes it had forecast a year ago.

Source: Steel Guru

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