Vale SA struck a US$700 million deal to sell future cobalt production from its Voisey's Bay nickel-copper-cobalt complex in Newfoundland and Labrador, Bloomberg News reported June 8, citing sources.
In January, Reuters reported that the company hired Bank of Montreal as it sought investors for a cobalt streaming deal at Voisey's Bay, which could help it fund underground expansion at the mine.
The move comes amid an increased demand for cobalt, which is a key ingredient in lithium-ion batteries, with prices more than tripling in the past two years.
The government of Newfoundland and Labrador is set to announce a "significant mining initiative" with Vale's base metals director Eduardo Bartolomeo in attendance, according to a statement on the government website. The statement did not give further details.
"Indeed, the government is making a significant mining announcement on Monday and we look forward to joining them," a spokesperson for Vale told CBC News. The provincial government also confirmed that Premier Dwight Ball will join Vale officials at the planned gathering.
CBC wrote in August 2017 that Vale placed on hold its plan to extend the life of Voisey's Bay and was undertaking a review to all projects due to depressed market conditions.
The company is expected to release a timeframe for the project. The underground mine was scheduled to begin production in 2020.
