Vale New Caledonia is sold to Prony Resources
Vale has announced that, following the December 8th, 2020 release, its subsidiary Vale Canada has concluded the sale of its ownership interest in Vale Nouvelle-Calédonie SAS 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 CEO Mr Eduardo Bartolomeo 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. This deal accomplishes that.
The deal provides the former VNC operations with a financial package totalling USD 1.1 billion, of which Vale Canada is contributing USD 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.
In addition, 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 continue addressing the growing demand for nickel by the electric vehicle industry.
