What we own

The Group has acquired a 70% net interest in a cobalt stream over the Voisey’s Bay mine in Canada owned and operated by Vale. The  Company is entitled to receive 22.82% of all cobalt production from Voisey’s Bay up until 7,600 tonnes of finished cobalt has been delivered, and  11.41% entitlement thereafter.

Anglo Pacific will make ongoing payments equal to 18% of an industry cobalt reference price for each pound of cobalt delivered under the cobalt stream, until it has recovered the US$300m original upfront amount paid for the stream (through accumulating credit from 82% of the cobalt reference price) through cobalt deliveries; thereafter, the ongoing payments will increase to 22% of the cobalt reference price.

Performance

  • The mine has a production track record dating back to 2005
  • The operation is transitioning from open pit to underground mining, with underground operations expected to start in 2021
  • Projected mine life to 2034, based on current reserves, with potential for further mine life extensions at depth
  • Production costs in 2nd lowest quartile of global nickel mine cost curve

Voisey's Bay

The Voisey’s Bay deposit located in Labrador, Canada, and was discovered in 1993 and production commencing in 2005. Voisey’s Bay boasts attractive ESG credentials including being one of the largest cobalt producers outside the DRC, and has one of the lowest CO2 equivalent intensities per unit of payable metal. The operation has also been awarded the national John T. Ryan safety award for six consecutive years, the TSM Excellence Awards for innovative sustainability projects and being rated AAA or AA in all TSM objectives in 2018.

The mine is fully owned by Vale, hosting a fly-in and fly-out camp with integrated mining and milling operations that produce nickel and copper concentrates (containing cobalt by-products). Nickel concentrates are processed at Vale’s nickel refinery located at Long Harbour whilst its copper concentrates are sold directly to the market. Processing of the nickel concentrates at Long Harbour Processing Plant involves high pressure acid leaching, solvent extraction and electro-wining (SX-EW) processes. Mining operations are currently focused on the Ovoid open-pit with underground mining expected to commence in 2021 as part of the Voisey’s Bay underground mine extension project (”VBME”). A Feasibility Study was completed in 2015 on the VBME which will target Reid Brook and Eastern Deeps zones of the deposit and will look to extend the mine life to 2034 with further exploration potential both in those zones at depth and also at the open pittable Discovery Hill deposit.

The VBME will convert the existing Voisey’s Bay operations from an open-pit mine to two new underground operations accessing both the Reid Brook and Eastern Deeps deposits via decline and ramp systems. Post VBME annual production is expected to increase to 45kt of Ni, 20kt of Cu and 2.6kt of Co. The expansion will use the existing infrastructure; i.e. concentrator, port and support facilities and as at 30 September 2020, the VBME was 54% complete with US$725 million of the budgeted US$1.7 billion capex spent. Start-up is expected in 2021.

Transforms Anglo Pacific's Commodity Exposure

  • World class mine and counterparty
  • Proactive redeployment of capital
  • Delivers on ESG objectives
  • Attractive cobalt dynamics