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.

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