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September 8, 2020

New Century scraps acquisition of Vale Nouvelle-Caledonie’s mines

Australian base metal development company New Century Resources (NCZ) has dropped its intention to acquire Vale Nouvelle-Caledonie’s (VNC) nickel and cobalt mines on the Pacific island of New Caledonia from Brazilian miner Vale.

Australian base metal development company New Century Resources (NCZ) has dropped its intention to acquire Vale Nouvelle-Caledonie’s (VNC) nickel and cobalt mines on the Pacific island of New Caledonia from Brazilian miner Vale.

In July this year, New Century said that it is making a “significant progress” in analysing the technical and commercial aspects of the transaction that would see NCZ acquire 95% of issued shares in Vale Nouvelle-Calédonie (VNC).

VNC is the operator of the Goro nickel-cobalt mine.

Despite NCZ’s due diligence and business analysis indicating “strong potential” for long-term operations at Goro mine, the company has not been able to generate the required funding for the transaction.

The Goro nickel-cobalt mine located on the South Pacific island of New Caledonia commenced production in August 2010.

Vale CEO Eduardo Bartolomeo said: “All parties to this negotiation have invested significant effort in an attempt to reach a solution for the sustainable future of VNC.

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“Vale and everyone involved in the divestment process – including the South Province of New Caledonia, the French State and VNC management – continue to explore alternatives to create a viable future for VNC, all of which will contemplate Vale’s exit.”

In May, NCZ signed a 60-day exclusivity agreement to acquire the 95% stake in VNC.

Foreign reserves and resources at Goro comprise a total of 193.5 million tonnes (Mt) grading 1.36% nickel and 0.13% cobalt, with 2,634 thousand tonnes of nickel and 249,000t of cobalt.

Vale started open-pit mining at the Goro plateau in 2003.

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