Vale Canada Limited (VCL) has entered into a binding Put Option agreement to sell Vale Nouvelle-Caledonies. A.s. Vale Nouvelle-Caledonies.
Ownership (VNC).
Vale said today's news marked the success of discussions about VNC's transition from VCL to a continuous operation and a new ownership structure with significant domestic participation, taking into account the objectives of social and environmental responsibility, in particular the launch of the dry stackage project, known as Lucy.
It also pledges to continue to fulfil all its commitments under the Convention on the Sustainable Development of the Greater South and to preserve the sustainable interests of new Caledonia and especially of Southern Kanak.
Mark Travers, Vale's executive director of Base metals, said: "The parties involved in this negotiation have spent a great deal of time and effort to find a solution for the sustainable future of VNC.
Vale and everyone involved in the process, including the staff and managers of the Southern Province of New Caledonia, the French State and VNC, are proud that these efforts have produced such a positive outcome."
The proposed transaction, which is scheduled to close in the first quarter of 2021, with $500 million of reserves to be reflected in Vale's consolidated financial statements, is subject to consultation with VNC's Works Council and other conditions, including VNC's approval.
Vale reiterates its commitment with its shareholders to transform its base metals business, streamline its future operations and continue to focus on its core assets while delivering on its new covenants with society to contribute to maintaining a sustainable environment to ensure safe operational continuity.
