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Canada : KGHM International inks agreement with VALE
Publish Date : 06-Aug-2013
An agreement has been inked between KGHM International and Vale Canada Limited, a wholly-owned subsidiary of Vale S.A. ("Vale") for the development of the Victoria project as well as the ore off-take to Vale's processing facilities in Sudbury, Canada.
It has been situated the Victoria project in Sudbury, Ontario, Canada. The deposit containing ore rich in copper, nickel and precious metals will be extracted as an underground mine.
KGHM International will construct and run the Victoria as the sole owner of the project and Vale will get a royalty and off-take on all future production from the project.
Polymetallic ore would be bought by the Vale from KGHM International and process it at Vale's Clarabelle mill in Sudbury. The contract is valid for the full life of all KGHM International's Sudbury mines, including future production from Victoria.
As per the Derek White, President and Chief Executive Officer of KGHM International Ltd, "This agreement sets the foundation for the development of the Victoria project and KGHM International's growing presence in the region. This project will not only create significant value for the KGHM group, but also for Vale as the offtaker."
The Company will continue to progress 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.
