IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Anglo Pacific Group (TSE:APY) has agreed to buy a share of cobalt production from Vale’s Voisey’s Bay mine in Canada, giving the mining royalty and streaming company exposure to the key battery metal for the first time, it said on Wednesday.
As part of the deal, Anglo Pacific will buy a company holding a 70% interest in part of the mine’s cobalt production from private equity sellers for $205 million cash and a contingent consideration of up to $27 million.
Voisey’s Bay, in Canada’s remote Labrador province, produces nickel-cobalt-copper concentrate. Vale shuttered the mine in mid-March due to the pandemic, and restarted operations in early July.
In 2015, Vale launched the Voisey’s Bay Mine Expansion (VBME) project to promote the transition from open pit to underground mining. Construction began in 2016 and is expected to be completed by 2022.
The VBME project is expected to extend the mine life of Voisey’s Bay, with annual underground mine production of around 45,000 tonnes of nickel in concentrate on average, as well as about 20,000 tonnes of copper and 2,600 tonnes of cobalt.
Anglo Pacific’s profits derive from its acquisition of royalties that give it the right to a share of revenue, profit, or production. It owns coking coal, copper, iron ore, and uranium royalties.
Midday Wednesday, Anglo Pacific’s stock was up 8% on the TSE. The company has a C$468 million market capitalization.
(With files from Reuters)
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