Mark Travers Archives - International Mining

Vale confirms that its Vale Canada Limited subsidiary has concluded the sale of its ownership interest in Vale Nouvelle-Calédonie SAS (VNC) to the Prony Resources New Caledonia consortium.

The consortium of investors, including Trafigura, comprises a majority and non-dilutable shareholding for New Caledonian interests, Vale said.

Eduardo Bartolomeo, CEO of Vale, said: “After several months of negotiations, I am pleased that we concluded our divestment of VNC, benefitting employees, New Caledonia and all its stakeholders. Vale is fully committed to this transaction. It meets the guarantees required at the financial, social and environmental levels and offers a sustainable future for the operations.”

Vale’s intent from the beginning of the divestment process was to withdraw from New Caledonia in an orderly and responsible manner, with the company saying the deal accomplishes that.

Vale previously tried to sell the operations to Australia-based New Century Resources, but the two parties failed to reach an agreement.

The deal provides the former VNC operations with a financial package totaling $1.1 billion, of which Vale Canada Limited is contributing $555 million to support the continuity of the operations. The financing of the “Pact for the Sustainable Development of the Deep South” will also be secured by Vale, it said.

The Pact for Sustainable Development of the Deep South was signed on September 27, 2008, between Vale New Caledonia and communities south of the “Grand” for a period of 30 years. It urges the industry to create and implement specific measures to support the development of the Deep South in a sustainable manner.

In addition to its financial commitment to continue operations, Vale will continue to have the right to a long-term nickel supply agreement for a proportion of the operation’s production, allowing it to, the company says, continue addressing the growing demand for nickel by the electric vehicle industry.

Mark Travers, Executive Vice President for Base Metals with Vale, said: “Along with the continuation of the Pact, the deal also allows the Lucy Project for dry storage of tailings to proceed. We want to acknowledge the time and effort of all stakeholders to achieving this deal, including the French State, and especially the employees of VNC for their trust and support through a lengthy and uncertain process.”

VNC is a producer of nickel and cobalt from the Goro mine. It also has a processing plant and a port.

Vale welcomed a small, socially distanced, team into its North Atlantic hub to commemorate the completion of its North Atlantic Operations Centre in Copper Cliff, Ontario, this week.

The event was also broadcast live to Vale’s North Atlantic employees and featured a virtual tour video, giving participants a glimpse into the innovative new space that will serve as the physical and virtual hub of its North Atlantic operations, Vale said.

Vale’s North Atlantic operations includes the Creighton, Coleman, Copper Cliff, Garson and Thompson mines, in Sudbury.

Vale Canada Limited’s CEO, Mark Travers, addressed attendees noting that, by transforming an existing building, the company had found an innovative way to make better use of an important part of the company’s history.

“Its fresh and open design promotes creativity, collaboration and integration – and supports the need to think and work in a more sustainable way to advance our transformation journey,” Travers said to the in-person and virtual audience.

The local architecture firm behind the project was inspired by a city layout in developing the updated design, with “streets” connecting different work zones or “neighbourhoods” flanked by meeting rooms that act as sound barriers to the open concept workstations within, Vale said. These “streets” help to organise different departments but also serve as a way-finding tool, creating a grid that helps staff and visitors navigate their way through the space. So too does the meeting room identification system that borrows the names of trees and shrubs native to Vale’s North American and Brazilian operating regions.

Flexibility was built into the design from day one and provided an unanticipated benefit as the COVID-19 pandemic has required Vale to reimagine and reconfigure the space to address new safety protocols, it said.

Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Operations, spoke to the group about the careful safety considerations the company is taking as it works towards the opening of the new building for eventual in-person collaboration.

“We are taking a staged approach so that effective pandemic processes and controls are implemented to ensure employee safety and wellbeing,” Otranto said.

Vale sells New Caledonia nickel-cobalt operations to consortium

Vale opens new operations centre for North Atlantic ops