Vale Base Metals (VBM), an independent subsidiary of the multi-metallic mining company Vale, announced that after completing a strategic assessment, it has agreed to form a consortium for its Thompson nickel business in Canada. This arrangement will enable Vale to reduce its direct involvement while retaining a 18.9% stake. The partners will commit up to 200 million US dollars to support the long-term sustainable operation of the asset.
Vale did not disclose the consortium members, but stated that a nickel concentrate purchase agreement has been signed. The transaction is expected to be completed by the end of 2026 and still requires regulatory approval.
At the same time, the announcement of the consortium arrangement was accompanied by a significant improvement in Vale's basic metals business's profit in the first quarter, mainly driven by the increase in copper and nickel prices, sales growth, and strong revenue from by-products.
The recovery of nickel business profits was mainly due to significant improvements in prices, sales, and unit costs.
Vale's nickel price increased by 6% year-on-year to 17,015 US dollars per ton, and nickel sales increased by 15% to 45,000 tons. Thanks to the cost reduction in Sudbury, Voisey's Bay, and Long Harbour, as well as the increase in by-product revenue, the adjusted nickel EBITDA rose from 41 million US dollars to 277 million US dollars.
The Thompson consortium has become an important new trend in the supply side. Vale's move indicates that it hopes to maintain mine operations while introducing external capital support and retaining access to the mineral resources.
In the context of growing market attention to supply sources and non-Indonesian nickel resources, this arrangement may have an impact on Western nickel supply.
