KGHM International (formerly Quadra FNX Mining and Vale Canada), a wholly owned subsidiary of the global mining company Vale, has reached an agreement regarding the development of the Victoria project as well as the ore off-take to Vale’s processing facilities in Sudbury, Canada.
The Victoria project, located in Sudbury, Ontario, is a project in the Sudbury Basin. The deposit containing ore rich in copper, nickel and precious metals will be extracted as an underground mine. Under the new arrangement with Vale, KGHM International 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 International and Vale also renegotiated the off-take arrangement for all of KGHM International’s production from its mines in the Sudbury Basin in Ontario, Canada. Vale will purchase polymetallic ore 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.