As part of a financing package for Vale’s investment program, the company has signed an agreement with Export Development Canada (EDC), the country’s official export credit agency. The agreement will enable the financing of infrastructure for export-oriented projects and future opportunities for Vale’s new businesses in Canada.
According to the contract, EDC will supply a credit line worth up to US$1 billion. Of this total, up to US$250 million is allocated to develop a nickel refinery in Long Harbor, in the province of Newfoundland and Labrador, while US$250 million is dedicated to financing projects in the province of Ontario.
The remaining US$500 million is available to fund purchases by Vale in Canada to supply the company’s operations outside the country. The long-term funding package does not involve provision of collateral. The terms of the financial transaction are based on market interest rates.