PARIS (Reuters)- New Caledonia's political leaders have reached a New Deal to sell Vale's nickel-cobalt mine in Goro, New Caledonia, including a majority stake for local interests, it said on Thursday, in a bid to resolve a row over the planned sale.
Vale's decision last year to sell its nickel mine and processing plant to a consortium that included Trafigura, the Swiss commodities trader, sparked a backlash from independent activist groups and violent protests that led to the closure of the mine in December.
Under Thursday's agreement, political groups proposed that New Caledonia's provincial government and other local interests take a 51 percent stake in Vale's business, while Trafigura would own 19 percent, down from the 25 percent it had planned in its initial sale to Vale.
The agreement also refers to a "technical and industrial partnership" with Tesla.
Under the political agreement, Tesla will act as an industrial partner and help set product and sustainability standards, as well as supply raw materials for Tesla's battery production.
Since the launch of Tesla's high-nickel battery solution, the market has seen increased interest in nickel, which has long been used as a raw material for stainless steel. Demand for nickel is expected to be driven by demand for electric vehicle batteries.
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