Exiro takes over one of Canada’s most productive nickel complexes
Exiro Nickel Company last week closed the acquisition of Vale Base Metals' Thompson Operations, marking a new era for one of Canada's most storied mining operations and for the community of Thompson, in Manitoba.
Thompson Operations is one of Canada’s most productive nickel complexes, comprising the T1, T3 and Pipe mines as well as a concentrator.
Exiro is targeting the responsible ramp-up of the concentrator to two-million tonnes a year of milling capacity within five years.
Exiro CEO Shastri Ramnath says Thompson Operations is one of Canada’s great nickel operations and believes its best years are still ahead.
“The geology is compelling, the workforce is exceptional, and the opportunity to unlock the potential of the Thompson Nickel Belt has never been greater.
“Exiro Nickel is a Canadian company built specifically for this moment, and we are committed to investing in the people, the mines, and the operation and exploration potential that will define the next chapter of the Thompson Nickel Belt,” Ramnath states.
The Thompson Nickel Belt is the fourth-largest nickel district globally, having a production record spanning more than 60 years. About 2.7-million tonnes of nickel has been produced in the region to date.
Exiro has been capitalised by a consortium that includes Orion Resource Partners, Canada Growth Fund (CGF), Exiro Minerals Corporation and Vale Base Metals, with the latter retaining an 18.9% ownership in the company and a multi-year offtake agreement for nickel concentrate produced at the Thompson concentrator.
CGF alone committed up to $85-million of the total capitalisation, reflecting federal confidence in the Thompson Nickel Belt as a critical piece of Canada’s domestic minerals supply chain.
Exiro will have up to $200-million, or C$280-million, of new capital to invest in Thompson Operations.
According to Vale, Vale Base Metals sold a majority stake in the Thompson Operations to optimise its global portfolio, ensure nickel portfolio competitiveness, and unlock dedicated capital to revive the aging mine.