Vale aims to boost nickel output by about 70% in coming years
2019-12-05 13:36:43 [Print]
Brazil's Vale SA plans to exit its troubled New Caledonia assets but still aims to ramp up nickel output ahead of rising demand for electric batteries, executives said on Wednesday.
The planned divestment of nickel operations in New Caledonia comes after Vale said last month it would write down the mine and incur a non-cash impairment charge of about $1.6 billion in the fourth quarter.
A year ago, Vale unveiled plans to invest $500 million in the mine after failing to find a partner for the operation. But on Wednesday, Chief Financial Officer Luciano Siani said Vale had decided to exit the operation, which has been beset by technical setbacks, a chemical spill and violent protests. Siani said Vale was examining all options in how to exit the unit and would make a decision in the first half of next year.
Last year, Vale's New Caledonian operations produced 32,500 tonnes of nickel, down from 40,300 tonnes in 2017.
The company remained bullish on nickel. It aims to boost production of the metal by about 70% in coming years to 360,000 tonnes a year, mainly by expanding in Indonesia, said Mark Travers, Vale's interim executive director for base metals.
The planned divestment of nickel operations in New Caledonia comes after Vale said last month it would write down the mine and incur a non-cash impairment charge of about $1.6 billion in the fourth quarter.
A year ago, Vale unveiled plans to invest $500 million in the mine after failing to find a partner for the operation. But on Wednesday, Chief Financial Officer Luciano Siani said Vale had decided to exit the operation, which has been beset by technical setbacks, a chemical spill and violent protests. Siani said Vale was examining all options in how to exit the unit and would make a decision in the first half of next year.
Last year, Vale's New Caledonian operations produced 32,500 tonnes of nickel, down from 40,300 tonnes in 2017.
The company remained bullish on nickel. It aims to boost production of the metal by about 70% in coming years to 360,000 tonnes a year, mainly by expanding in Indonesia, said Mark Travers, Vale's interim executive director for base metals.
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