News in Mining Industry
Nickel Business Merger in Canada: Vale's copper and nickel company, VBM, is prioritizing a merger with Glencore's nickel business in the Sudbury region of Canada. This merger is expected to save hundreds of millions of dollars in costs and strengthen collaboration between the two companies in the region.
Vale BM Prioritizes Potential Merger of Canada Nickel Operations with Glencore
RIYADH (Reuters) - Vale Base Metals (VBM) is focusing on a crucial decision this year: whether to merge its nickel operations in Canada's Sudbury basin with those of Glencore. This strategic move could lead to cost reductions for both companies, according to VBM's chairman.
Nickel, essential for electric vehicle batteries, has seen fluctuating prices, prompting mining companies to seek cost-cutting measures in its production.
Discussions about a merger in Sudbury have been ongoing since 2006, with potential annual savings estimated at over $500 million. Various options for mining and processing in the region have been considered.
"We have some intriguing ideas, including reworking tailings and other old areas, and we are evaluating those," VBM Chairman Mark Cutifani mentioned during an interview at the Future Minerals Forum (FMF) in Riyadh.
"This year, we should determine whether a collaboration is feasible. It is certainly one of my top priorities," he added.
Glencore has not provided any comments on the matter.
VBM, a subsidiary of Brazil's Vale specializing in copper and nickel, and Glencore operate adjacent to each other in the Sudbury basin, which spans 60 kilometers (37 miles).
VBM controls five mines, while Glencore manages the Nickel Rim South mine, nearing the end of its 15-year life, and the Onaping Depth project. Both companies also extract copper and precious metals from these sites.
"Sharing infrastructure makes sense," Cutifani noted.
However, he could not specify the potential savings from the merger at this time.
As part of its long-term strategy to invest $25 billion to $30 billion in new projects across Brazil, Canada, and Indonesia over the next decade, VBM aims to nearly double its nickel production to 300,000 metric tons annually.