Sumitomo Metal, Mitsui cut investment in Vale Canada project

TOKYO Wed Oct 24, 2012 8:15pm EDT

TOKYO Oct 25 (Reuters) - Sumitomo Metal Mining Co and Mitsui & Co said on Thursday that their investment in Vale's New Caledonia nickel cobalt project will fall to a collective 14.5 percent from 21 percent on bigger-than-expected repair costs.

The two and Vale Canada, a unit of the Brazilian mining giant, agreed that Sumitomo Metal and Mitsui would not pay more than $4.6 billion towards the project, which has fallen behind schedule due to equipment trouble, the two firms said in a statement.

Mitsui and Sumitomo Metal hold an option to raise their stake in the project to 21 percent in the future, the two said.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.