Brazil’s mining giant Vale (NYSE:VALE) has inked a pioneering agreement to sell future production of cobalt from its Canadian Voisey’s Bay mine, located in the Atlantic province of Newfoundland and Labrador, as speculation rises over a shortage of the metal needed to make batteries and which has been pushing companies to secure long-term supply.
The streaming deal – making an upfront payment in exchange for future production – is for about $700 million of cobalt sources familiar with the matter told MINING.com just hours before an official announcement is made.
Newfoundland and Labrador’s Premier Dwight Ball and Vale leaders, are scheduled to make the announcement in St. John’s Monday, at 10 a.m. local time.
The Rio de Janeiro-based miner has been looking for financing to extend the life of its Voisey’s Bay, which produces mainly nickel, by transiting to underground from open-pit operations. The company, the world’s No.1 iron ore producer, has repeatedly said a streaming arrangement was among options.
More to come…
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