Californian Tesla to hold stake in New Caledonia’s Vale nickel mine after sale

by   |  VIEW 1752

Californian Tesla to hold stake in New Caledonia’s Vale nickel mine after sale

Late on Thursday, political leaders in New Caledonia, a French territory comprising dozens of islands in the South Pacific, had agreed to new terms for a sell-off deal of Brazilian mining mogul Vale SA’s nickel business in the region as American e-vehicle maker Tesla had reportedly teamed up with local stakeholders for a slice in Vale’s nickel mining business in the French territory amid growing frets of chip shortage.

In point of fact, latest advancement about a planned sell-off deal of Vale SA’s nickel businesses in the region came against the backdrop of a steep shortage in semiconductors that had led to a production cut in a number of carmakers including Detroit carmaker General Motors and Europe’s Stellantis, while under a new divestment deal of Vale SA’s nickel mines in the region, Tesla Inc.

would be allowed to source raw materials for its e-vehicles’ batteries from the French Pacific territory.

New Caledonia agrees to new terms on Vale’s nickel mine sale

On top of that, under new terms of sale of Vale’s nickel business in the South Pacific French territory, local political groups had proposed that a controlling 51 per cent stake in Vale operations would be held by the New Caledonia’s provincial authorities alongside other local interests, while the new deal signed off by pro-independence and loyalist leaders in the French territory had also flagged a “technical and industrial partnership” with the Californian e-vehicle trailblazer Tesla Inc.

according to which the world’s largest carmaker by valuation would be able to source raw materials for its EV batteries after Vale SA’s sale of nickel mines in the region. Apart from that, Trafigura would have a stake of 19 per cent, significantly lower than an initial 25 per cent sale deal with the Brazilian mining conglomerate.

If truth is to be told, Vale SA’s announcement to divest its nickel mines and processing plants in the region to a consortium including Swiss Trafigura, led to fierce demonstrations from the local leaders last year, while violent protests had forced Vale SA to stall nickel productions in the French territory on December last year.