Investors worry a referendum on mining in Imbabura, the province in which its flagship Cascabel copper-gold project is located, could jeopardize the mine's future.
Vale said risk of a new dam break as a consequence of an unstable embankment at Gongo Soco open pit, in the southeastern state of Minas Gerais, are now minimal.
President and CEO Mark Bristow said the company expected to complete a feasibility study for the project, which could extend the life of the mine into the 2030s.
The $285-million takeover bid, considered by some analysts and Acacia’s minority shareholders as low, would see the world's second largest gold producer buying the remaining 35% of the African miner it does not already own, at a discount.
Debt financing agreements worth $200 million could be finalized “any day” and are expected to catalyze equity financing to start the almost 30-month development of the 1.1 billion-tonne Colluli sulphate of potash project, the company said.
The Canadian miner said its long-term growth strategy focus on developing its existing pipeline of projects, while seeking global exploration opportunities.
The state-owned copper miner said that since mining at the open-pit mine ends in 2020, which is when the underground section begins commercial operations, it will able to keep productive capacity unchanged.