Operator: Vale
Location: Canada
Term of Stream: Life of Mine
Stream Parameters: 42.4% of the Voisey’s Bay mine cobalt production until the delivery of 31 million pounds of cobalt and 21.2% of cobalt production thereafter for the life of mine.
Upfront Consideration: US$390M
Stream: Cobalt
Primary Metal: Nickel

Project Overview

The Voisey’s Bay mine and concentrator is located on the north coast of Labrador, approximately 1,200 kilometres north of St. John’s, Newfoundland. Production began in 2005 and open pit mining is expected to continue until 2022. There will be a gradual transition from open pit to underground mining beginning in 2021.

In July 2015 Vale’s Board of Directors sanctioned the development of the underground deposits at Voisey’s Bay. The mine expansion project will focus on the development of two separate deposits, Reid Brook and Eastern Deeps. Once in operation, underground mining is expected to extend the life of the Voisey’s Bay operation until at least 2034. At peak production, the underground mines are expected to produce about 45,000 tonnes per year of nickel-in-concentrate which will be shipped to Vale’s processing facility in Long Harbour, Newfoundland for further processing into finished nickel. The mine also produces a copper concentrate which is shipped to third party smelters but does not contain payable cobalt.

The construction phase of the mine expansion began in 2016 and is expected to be completed in 2022. This will include the expansion of existing surface infrastructure at Voisey’s Bay for increased power generation capacity, additional permanent accommodations, offices, warehousing and maintenance shops. The water and sewage treatment facilities will also be upgraded. Delivery of cobalt production to Wheaton will commence after January 1, 2021.

The development of the underground mines, which is the largest segment of the construction program, requires the development of declines from surface to access the ore bodies, and the construction and installation of supporting infrastructure including underground crushing and conveying, paste / backfill plant, maintenance facilities and underground mine ventilation systems.

More Information

For more information about Voisey’s Bay, please visit the following:

Voisey’s Bay Acquisition Presentation
Vale News Release: US$ 690 million Cobalt Stream unlocks Vale’s Voisey’s Bay Mine Expansion
View Reserves & Resources