Vale (VALE) and Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) said Wednesday they are considering jointly developing a $1.6 billion-$2 billion copper project at their neighboring properties in Canada’s Sudbury Basin, in what could become one of the region’s most significant new copper developments in decades.
Vale (VALE) and Glencore (OTCPK:GLCNF) (OTCPK:GLNCY) said they will study whether they can jointly mine their underground copper deposits by using existing infrastructure at Glencore;s idled Nickel Rim South mine.
The proposed 50-50 JV would be aimed at producing 880,000 metric tons of copper over 21 years, alongside nickel, cobalt, gold and platinum group metals.
“The contemplated partnership paves the way to extract valuable copper-rich orebodies for our respective operations that would otherwise be lost to both companies,” Vale Base Metals (VALE) CEO Shaun Usmar said.
The two companies have been weighing a potential Canadian partnership for 20 years, with the latest announcement coinciding with record copper prices.