Vale Base Metals, the nickel arm of Vale S.A., has agreed to sell its Thompson Nickel Operations in Manitoba, Canada, to the newly formed Exiro Nickel Company Inc. The deal transfers ownership of the Thompson nickel mine, concentrator, and the Pipe mine, while the smelter and refinery remain with Vale.
Under the terms of the agreement, Vale will receive an 18.9% equity stake in Exiro Nickel and up to US$200 million in contingent payments tied to future nickel prices. A consortium of investors—Orion Resource Partners, Canada Growth Fund (CGF), and Exiro Minerals—will provide up to US$200 million in financing for Exiro Nickel, supporting the company’s development and infrastructure plans.
Vale will retain day‑to‑day operational responsibility for the Thompson Operations until the transaction closes, and it will hold offtake rights for a minimum of five years. The sale is expected to close by the end of 2026, subject to regulatory and government approvals.
The transaction reflects Vale’s broader strategic review of its base‑metal portfolio that began in early 2025. By divesting the Thompson asset, Vale can focus capital on its core iron‑ore business and high‑grade copper and nickel projects, while still maintaining a financial interest and supply relationship in the Thompson mine. Exiro Nickel plans to double production over five years through mine development, exploration, and infrastructure upgrades, with the CGF’s up to US$85 million investment underscoring the project’s importance to Canada’s critical‑minerals supply chain.
In its Q4 2025 earnings, Vale’s CEO Gustavo Pimenta said, “We are experiencing the strongest operational performance in Vale’s history.” He added, “With strong performance and consistent execution across all three businesses, we delivered robust results and entered 2026 with great confidence and clear momentum.” The sale follows a period of strong operational output but a significant EPS miss, highlighting Vale’s focus on portfolio optimization and long‑term value creation.
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