September 06, 2008

Sumitomo Metal and Mitsui to retain 21% stake in Goro nickel

Platts reported that Japanese companies Sumitomo Metal Mining and Mitsui have decided to keep their existing stakes in the Goro nickel project on the French Pacific island of New Caledonia.

A Sumitomo official in a joint statement from the two companies said that "We have decided to keep our 11% and Mitsui 10%. CVRD Inco will also keep its 69% stake interest in the project. The remaining 10% is held by the Provinces of New Caledonia. Both Japanese companies have a combined 21% stake in the Goro project through Sumic Nickel, which is registered in the Netherlands, as company tax in Japan is very high.”

He added that “At present, the Goro project remains on schedule for commissioning and production by end 2008 and the project is expected to produce 60,000 tonnes per year of nickel metal and 4,000 to 5,000 tonnes per year of cobalt metal.

CVRD Inco is a wholly owned subsidiary of Companhia Vale do Rio Doce, is the world's leading producer of nickel and an important supplier of copper, cobalt and precious metals.