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

Vale and Australian firm New Century Resources are negotiating the sale of the former’s New Caledonia project, the company announced.


Australian media reports have linked a second company, Igo Limited, to the sale of New Caledonia—which comprises the Goro nickel and cobalt mine, a processing plant, and a port—but New Century, according to Vale’s announcement, is in a 60-day exclusivity pact to negotiate the purchase of a 95pc stake. 


The Brazilian miner has incurred losses worth an estimated $9bn on the plant since 2010. Vale has also included a restructuring plan worth $120mn that could layoff 140 employees as part of its pact with New Century. The restructuring plan also includes exporting 2mn mt of nickel ore per annum from a deposit that feeds the plant.


The plant’s closure is largely driven by the Brazilian miner’s determination to produce nickel hydroxide cake, which is in hot demand for electric vehicle manufacturing.

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