Vale inks 20-year deal with precious metals miner
In $570 million deal, about 70 per cent of Sudbury mine's gold to be sold to Silver Wheaten
Posted: Feb 6, 2013 3:33 PM ET
Last Updated: Feb 7, 2013 11:20 AM ET
Vale says its new deal with Vancouver-based Silver Wheaton will advance its operations in Sudbury.
The mining giant signed a 20-year deal to sell gold to Vancouver-based Silver Wheaton.
The vice-president of Corporate Affairs for Vale said the $570 million deal will go toward Vale's operations.
“We have some significant investments ahead of us, including the billion dollars for clean air, things of that sort,” Cory McPhee said.
“So this brings us into a much stronger cash flow position that allows us to fund those projects that we've committed to.”
McPhee said Vale will sell 70 per cent of the gold produced at its Sudbury mines to the company.
The deal also includes Silver Wheaton paying $1.3 billion for a 25 per cent stake in gold production from a mine owned by Vale in Brazil, called Salobo.
"Vale has a history of mining success that spans decades. We're confident that Salobo and Sudbury are going to deliver substantial long term growth and value to both our company shareholders,” said Randy Smallwood, president and CEO of Silver Wheaton.
“We're honoured to have Vale as a partner."
The company said it expects about 50,000 ounces of gold a year to come out of Sudbury.
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