Brazilian major Vale has signed a binding put option agreement for the sale of its ownership interest in Vale Nouvelle-Calédonie (VNC), formalising the sale to a consortium led by management and staff.
Last month, Vale announced a period of exclusivity for negotiations with a consortium gathered in a new company called Prony Resources, led by current Vale New Caledonia management and employees and supported by both the Caledonian and French authorities with Trafigura as a minority shareholder.
News of the put option signals the success of those discussions on the transition and continuity of VNC operations from Vale to a new ownership structure with significant domestic participation.
“All parties to this negotiation have invested a significant amount of time and effort to reach a solution for the sustainable future of VNC,” said Vale executive director of base metals, Mark Travers.
“Vale and everyone involved in the divestment process – including the South province of New Caledonia, the French State and VNC employees and management – can be proud of the fact that those efforts have yielded such a positive result.”
The proposed transaction, which is scheduled for completion in the first quarter of 2021 and as to which a reserve of $500-million will be reflected on Vale’s consolidated financial statements, is subject to consultation with the VNC works council and other conditions, including approvals by Caledonian authorities and the French State.
Earlier in the year, Vale was in discussions to sell VNC to Australian miner New Century Resources, but that deal failed to progress past an exclusivity period.