Brazilian major Vale has announced that the Goro nickel and cobalt mine, in New Caledonia, will be placed on care and maintenance, after failing to reach an agreement with Australian miner New Century Resources to acquire the operation.
The exclusivity period that Vale and New Century entered into in May lapsed on Tuesday, without the ASX-listed company submitting a binding offer for Goro.
New Century explained that although it believed there was strong potential for sustainable long-term operations at Goro, negotiations with various stakeholders had not been able to generate a funding package and equity structure for Vale-Nouvelle-Caledonie (VNC) that “adequately accommodates a suitable risk/reward scenario”.