Vale completes prefeasibility study on new nickel sulphate project

Canadian mining giant Vale has completed an important milestone in the proposed nickel sulphate project expanding into Quebec.

Vale has finished the pre-feasibility study for the proposed project in Bécancour, Que. that will help supply material used to make lithium-ion batteries.

This news comes more than two months after the federal government announced it will invest $2 billion on mineral strategy for the electric vehicle battery supply chain and one month after Vale inked a deal with Tesla to supply nickel for its electric vehicles.

"This strategic initiative highlights Vale's focus on delivering low carbon and high-purity nickel products into the growing electric vehicle industry," the company said in a news release Thursday.

"(It) would be the first-of-its-kind fully domestic nickel sulphate facility for the North American market, leveraging current and future production of low carbon and high-grade nickel from Vale's world-class Canadian operations."

The new operation would be able to process 25,000 tonnes of contained nickel into nickel sulphate annually, the study suggests.

A final investment decision and project schedule depends on board and regulatory approvals, as well as downstream battery supply chain integration and requirements, Vale said.

"This is a key validation for a project that offers both diversified sales and an accelerated entry point into North America's burgeoning electric vehicle supply chain," said Deshnee Naidoo, the executive vice president of Vale Base Metals.

"We look forward to continued discussions with potential partners, as well as with the Government of Quebec and the Government of Canada, to bring this strategic project to fruition."

In Canada, Vale currently has operations in:

• Sudbury, Ontario
• Toronto, Ontario
• Port Colborne, Ontario
• Thompson, Manitoba
• St. John's, Newfoundland and Labrador
• Voisey's Bay, Newfoundland and Labrador
• Long-Harbour, Newfoundland and Labrador