Vale to sell Manitoba nickel complex to investor group

Brazilian mining giant Vale (NYSE: VALE) is selling control of Manitoba’s Thompson nickel mine complex to a trio of investors that agreed to inject up to US$200 million ($280 million) in the operation as part of a turnaround effort.

Privately held Canadian explorer Exiro Minerals, Orion Resource Partners and the federally owned Canada Growth Fund (CGF) will form a new company alongside Vale’s base metals unit to invest in Thompson, according to a statement issued Thursday. Exiro, Orion and CGF will own 81.1% of the new company, which will be called Exiro Nickel, compared with 18.9% for the Brazilian miner.

“Today’s announcement secures the future of mining at Thompson, a site with a significant endowment and great people, and which is a key part of northern Manitoba’s rich mining history,” Vale Base Metals CEO Shaun Usmar said in the statement. “We believe in the strategic value of nickel and are proud to be part of Thompson’s new future.”

Thompson is one of Canada’s largest underground nickel mining operations, which Vale took on when it bought former Toronto-based miner Inco in 2006 for US$17 billion. Inco discovered the ore body in 1956 and mining began in 1961.

The transaction follows a strategic review begun by Vale in early 2025 aimed at securing a long-term future for the Thompson nickel belt, one of Canada’s historic mining districts. The new owners are to focus on mine development, exploration and infrastructure upgrades intended to sustain operations and employment in the region.

Major employer

With about 700 workers, Thompson is a major employer in northern Manitoba. The agreement provides stability for the workforce while positioning the assets under owners dedicated to growing the operation, Vale said Thursday.

“Our focus in the next few years is going to be to turn the operation around,” Exiro Nickel CEO Shastri Ramnath told reporters on a conference call. “We are looking to invest capital in the current operations here. There’s a huge amount of potential in the belt, but our focus immediately will be on the operations.”

“Our plan in the five years is to double the current production. In order to do that, we’re going to need to add to the team.”

Exiro sees the Thompson nickel belt “as a multi-generational asset, with decades of responsible mining and value creation still ahead,” said Ramnath, a geoscientist who previously worked for FNX Mining and Falconbridge.

The new company’s long-term goal is to go public.

“We will remain private until the company is healthy and thriving,” Ramnath said.

Year-end closing

The transaction is expected to close by the end of 2026, subject to certain closing conditions including customary regulatory and government authorization. If approved, the transaction will conclude Vale’s strategic review. The Brazilian miner will maintain day-to-day operational responsibility for the mining complex until the deal closes.

Vale has signed an offtake agreement for the nickel concentrate produced at the Thompson mill.

Thompson includes two underground operating mines, an adjacent mill and significant exploration opportunities on the 135-km long Thompson nickel belt. Thompson produced 12,000 tonnes of Vale’s finished nickel last year – 21% more than the 9,900 tonnes produced in 2024.

“The Thompson mine is a strategic asset, both for the nickel that supports critical supply chains and for the significant economic benefits it delivers to Manitoba and Canada,” said Yannick Beaudoin, CEO of the $15 billion CGF, which has committed to invest US$85 million in the asset. “This transaction builds on CGF’s growing portfolio of mining investments and strengthens Canada’s position as a global leader in critical minerals.”

Vale shares fell 0.6% to US$15.89 in New York trading Thursday morning. The stock has traded betwen US$8.06 and US$17.72 in the past year.