KGHM International Enters Into Agreement With Vale, Becoming Sole Operator of
the Victoria Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/02/13 -- KGHM
International Ltd., formerly Quadra FNX Mining Ltd. (the "Company" or
"KGHM International"), is pleased to announce that an agreement
between KGHM International and Vale Canada Limited, a wholly-owned
subsidiary of Vale S.A. ("Vale"), the global mining company, has been
reached regarding the development of the Victoria project as well as
the ore off-take to Vale's processing facilities in Sudbury, Canada.
The Victoria project, located in Sudbury, Ontario, Canada, is a great
discovery and world-class project in the Sudbury Basin. The deposit
containing ore rich in copper, nickel and precious metals will be
extracted as an underground mine.
Under the new arrangement with Vale, KGHM International will build
and operate Victoria as the sole owner of the project and Vale will
receive a royalty and off-take on all future production from the
KGHM International and Vale also re-negotiated the off-take
arrangement for all of KGHM International's production from its mines
in the Sudbury Basin in Ontario, Canada. Vale will purchase
polymetallic ore from KGHM International and process it at Vale's
Clarabelle mill in Sudbury. The contract is valid for the full life
of all KGHM International's Sudbury mines, including future
production from Victoria.
"This agreement sets the foundation for the development of the
Victoria project and KGHM International's growing presence in the
region," said Derek White, President and Chief Executive Officer of
KGHM International Ltd. "This project will not only create
significant value for the KGHM group, but also for Vale as the
The Company will continue to progress towards approval and granting
of the required permits, arrangements with First Nations, and prepare
for infrastructure construction and shaft development in the second
half of the year.
About KGHM International Ltd.
KGHM International Ltd. is a fully owned subsidiary of KGHM Polska
Miedz S.A. (WSE:KGH), focused on growth in copper and other metals.
We operate mines in Canada, the USA and Chile and are currently
constructing the Sierra Gorda copper-molybdenum project in Chile and
actively progressing the Victoria project, our newest discovery in
Sudbury, Ontario, Canada. KGHM International produces copper, nickel
and precious metals from its operating mines: Robinson in Nevada,
Carlota in Arizona, Franke in northern Chile, and Levack, which
includes the Morrison Deposit, Podolsky and McCreedy West in Sudbury,
Ontario. The Company has two key development projects: the Sierra
Gorda project, a copper-molybdenum project in Chile, and the Victoria
project, a polymetallic project in Sudbury, Ontario. KGHM
International Ltd. employs approximately 3,500 people in North and
KGHM International Media Contact:
Corporate Communications Manager
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