KGHM International Ltd., formerly Quadra FNX Mining Ltd., has announced an agreement with Vale regarding the development of the Victoria project, as well as the ore off-take to Vale's processing facilities in Sudbury.
The Victoria project in Sudbury is a discovery containing ore rich in copper, nickel and precious metals, and will be extracted as an underground mine.
Under the new arrangement with Vale, KGHM will build and operate Victoria as the sole owner of the project and Vale will receive a royalty and off-take on all future production from the project.
KGHM and Vale also re-negotiated the off-take arrangement for all of KGHM's production from its mines in the Sudbury Basin. Vale will purchase polymetallic ore from KGHM and process it at Vale's Clarabelle mill. The contract will last the full life of all KGHM's Sudbury mines, including future production from Victoria.
“This agreement sets the foundation for the development of the Victoria project and KGHM International's growing presence in the region," Derek White, president and CEO of KGHM, said in a news release. “This project will not only create significant value for the KGHM group, but also for Vale as the offtaker.”
KGHM will continue to work towards approval and granting of the required permits, arrangements with First Nations, and prepare for infrastructure construction and shaft development in the second half of the year.
KGHM International is a miner of copper and other metals, working out of Canada, the U.S. and Chile. It's building the Sierra Gorda copper-molybdenum project in Chile. Other mines include Robinson in Nevada, Carlota in Arizona, Franke in northern Chile, and in Levack, including the Morrison Deposit, Podolsky and McCreedy West.
KGHM employs about 3,500 people in North and South America.
