Brazilian miner, Vale SA, will pay the province of Newfoundland and Labrador $230 million CAD for letting the company export more Voisey’s Bay nickel concentrate while a processing plant ramps up in the province.
Vale will be allowed to export another 94,000 tonnes that must be replaced later, Natural Resources Minister Derrick Dalley announced.
The move will mean $200-million in compensation from Vale over three years. Another $30-million in community investments from the company are to be negotiated with the province.
Complex design and other issues have delayed full operation of the Long Harbour processing plant, about 120 kilometres west of St. John’s. The $4.3-billion facility will be an asset for years to come, Mr. Dalley said. Mining at Voisey’s Bay would not have resumed until Long Harbour can process more nickel concentrate from that site.