Exiro Nickel, a nickel producer based in Toronto, has finalized a deal with the federal government to secure the future of one of Canada’s most significant mining operations for the crucial mineral. The transaction, valued at $280 million, involves Exiro Nickel taking ownership and operation of the Thompson Mine Complex in northern Manitoba from Vale.
In collaboration with New York-based Orion Resource Partners and the Canada Growth Fund, Exiro Nickel now holds an 81.1% stake in the operations, while Vale retains an 18.9% minority interest through its Canadian subsidiary. The sale of the mining operations, situated on the outskirts of Thompson approximately 640 kilometers north of Winnipeg, was initially announced in February.
Funding for the transaction, totaling around $116 million, received substantial support from the federal government, which recognizes nickel as one of the 34 critical minerals essential for manufacturing various key products. During an event in Thompson, Exiro CEO Shastri Ramnath highlighted the significance of the deal in addressing the challenge of extracting nickel efficiently and emphasized the role of nickel in producing electric vehicle batteries, stainless steel, energy storage, and other strategically important industries.
Ramnath expressed Exiro’s commitment to enhancing production levels by doubling them within five years, aiming to restore them to levels seen a decade ago. The company also aims to achieve positive cash flow within two to three years. The transaction includes approximately 135 kilometers of potential exploration assets, signifying growth opportunities for the company.
The acquisition of the Thompson Mine Complex has garnered praise from various officials, including Premier Wab Kinew and federal Northern and Arctic Affairs Minister Rebecca Chartrand. Kinew emphasized the deal’s positive impact on preserving jobs, mentioning that it safeguards 675 unionized positions and creates opportunities for Manitobans. Additionally, Cheryl Moore, chief of Nisichawayasihk Cree Nation, expressed hope that the project would benefit northern First Nations by promoting economic reconciliation and fair wealth distribution from their territories.