Deep sea mining puts $560 billion in land extraction at risk — report
Even in optimal scenarios, the activity would generate only $6.25 million in tax revenue for countries involved, says Planet Tracker.
Vale Base Metals (VBM) is prioritizing a decision on whether to combine its nickel operations in Canada’s Sudbury basin with those of Glencore this year, a move that could reduce costs for both companies, its chairman said.
Nickel is a key component in electric vehicle batteries and mining companies have been trying to cut costs to produce it at a time of declining prices.
Talks for a Sudbury tie-up have been on and off since 2006, when annual savings were put at more than $500 million, with a number of options being touted for the mining and processing operations in the area.
“We’ve got some interesting thoughts on what is possible, (including) tailings (waste) and some of the old areas that could be redone and we are working through that,” VBM chairman Mark Cutifani told Reuters in an interview on the sidelines of the Future Minerals Forum (FMF) mining gathering in Riyadh.
“During the course of this year we should work out whether there’s something we can do together or not. Certainly that is one of my priorities,” he added.
Glencore declined to comment.
VBM, the copper and nickel spin-off of Brazil’s Vale, and Glencore share boundaries in the 60-km (37-mile) Sudbury basin.
VBM owns five mines, while Glencore owns the Nickel Rim South mine that is winding down operations after 15 years, and the Onaping Depth project. The assets also produce copper and precious metals.
“It makes sense to do something where we are sharing infrastructure,” Cutifani said.
Cutifani could not say what savings would be made now.
As part of its plan to spend $25 billion to $30 billion in new projects in Brazil, Canada and Indonesia over the next decade, VBM aims to almost double nickel production to 300,000 metric tons per year.
(By Clara Denina; Editing by Emelia Sithole-Matarise)
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