Big Money
Vale gets $1bn loan from Canada's EDC
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By: Liezel Hill
4th October 2010
TEXT SIZE TORONTO (miningweekly.com) – Canada's export credit agency Export Development Canada (EDC) has agreed to provide up to $1-billion in financing to Brazilian mining group Vale, to help fund projects in Newfoundland and Labrador and Ontario, and to buy Canadian products and services for the company''s international operations.
Up to $250-million will be available for spending on the nickel processing plant Vale has committed to build in Newfoundland and Labrador, and another $250-million will be earmarked to finance a handful of projects that Vale is planning in Ontario.
The remaining $500-million will be available for the future purchase of Canadian goods and services by Vale for its operations outside Canada, or to support Vale exports involving signed contracts with Canadian suppliers.
Vale, the second-biggest mining group in the world and the largest iron-ore producer, bought Canadian nickel-miner Inco in 2006.
The company's expansion plans will create “hundreds of millions” in potential supply and services opportunities for Canadian companies over the next few years, the EDC said in a statement.
“The recent global recession has emphasised that diversification of markets will be key to growing Canada’s exports in the coming years,” EDC CEO Eric Siegel said.
“Vale’s global operations provide opportunities for Canadian companies to gain a foothold in key emerging markets like Brazil.”
The funds will be provided through an unsecured nonrevolving bilateral loan facility.
Edited by: Liezel Hill
