Vale, Glencore team up to explore near Sudbury
SUDBURY, Ont. – Yesterday Vale and Glencore announced that they are planning to create a joint feasibility study to explore and develop mineralization accessible from Glencore’s Nickel Rim South mine.
The study will include both economic and technical feasibility for using the infrastructure – shaft, underground development, surface facilities – of the Nickel Rim mine that is expected to exhaust its reserves in 2022. The two companies hope they can exploit a number of deposits in close proximity. Vale’s Victor property and a shared deposit on the boundary of their properties are included.
“A joint approach could allow for resources to be unlocked that would likely not otherwise be productive,” said Ricus Grimbeek, COO, Vale’s North Atlantic Operations and Asian Refineries.
“Assuming a successful outcome to our study, this synergy could also lead to significant value generation – including job creation – at a time when the medium to long term market outlook for both nickel and copper looks very promising,” he added.
“Assuming a positive outcome from the joint feasibility study, there are multiple benefits to the potential of coming together to mine deposits adjacent to boundaries that are accessible from Glencore’s Nickel Rim South mine infrastructure,” said Peter Xavier, VP of Glencore’s Sudbury Integrated Nickel Operations.
A joint approach to the study is an extension of the parties’ past collaboration in the area. It is expected that the feasibility study will take approximately a year to complete. More details on the specifics of the potential arrangement will be shared once the study is complete.
This story first appeared on Canadian Mining Journal