Vale to seek sale of Thompson nickel mining operation

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This article was published 23/01/2025 (254 days ago), so information in it may no longer be current.

Brazil-based Vale S.A. has announced it is looking to sell its nickel mining operation in Thompson.

A company news release Thursday said it has launched “a strategic review to explore and evaluate a range of alternatives, including the potential sale” of its mining and exploration assets near the northern Manitoba city.

Vale acquired Inco in 2006, which has been mining nickel continuously in the Thompson area since 1956.

The company said the review is “part of a process to optimize Vale Base Metals’ asset base, ensuring the competitiveness of its vertically integrated nickel portfolio.”

The review is expected to conclude in the second half of 2025. It was not clear if that means some kind of deal is being sought within that time frame.

The Thompson operation has undergone all sorts of changes over the years, with its workforce pared back to likely less than 1,000 today from more than a couple thousand 30 years ago.

In 2017, it shut down its smelter and refinery in Thompson, eliminating about 300 jobs. It has been shipping ore for processing to its operation in Sudbury, Ont., since then.

In 2021, it announced a $150 million investment that was to extend mining activity for another 10 years.

The Thompson Nickel Belt has proven to be a rich formation. The company said it produced 10,500 metric tonnes of finished nickel for the 12-month period ending in the third quarter of 2024.

The assets now under review include two underground mines, an adjacent mill and significant exploration opportunities on the 135-kilometre-long Thompson Nickel Belt.

martin.cash@freepress.mb.ca