Nickel processing at Vale project is delayed

Nickel processing at Vale's Goro unit in New Caledonia, which had been expected to start in January, is undergoing tests but have not entered the production phase, the company said this week. The plant had its launch delayed as building costs rose sharply, nickel demand fell and it faced environmental critics. Mining activities began last year and in October Vale said it expected to begin processing in January.

In a statement, the Brazilian company said this week it had successfully tested the process through which metal is leached from the ore, and will test the refining process "at a later date". No words on whether the 20,000 tonnes of nickel forecasted to be produced this year will be reached. When at full production, Goro is expected to produce 60,000 tonnes of nickel annually, or about 5 percent of global production. It will also produce some cobalt.