OTTAWA: Export Development Canada (EDC) is providing up to US$1 billion in financing to global mining giant Vale S.A. in Brazil to assist with capital expenditures related to Canadian export projects and to encourage future Canadian procurement in its international operations.
“EDC’s relationship with Vale provides for significant potential benefits for Canada, both in Canadian mining and processing projects and in international opportunities for Canadian equipment suppliers and engineering firms,” said Eric Siegel, president and CEO of EDC, Canada’s export credit agency based in Ottawa.
He said the global recession has emphasized that diversification of markets will be key to growing Canada’s exports in the coming years. “Vale’s global operations provide opportunities for Canadian companies to gain a foothold in key emerging markets like Brazil,” Siegel said.
Up to $250 million of the funding will be made available for investment in the Long Harbor nickel processing plant in Newfoundland and Labrador, and another $250 million will be available for several projects slated for development in Ontario.
The remaining $500 million is for future purchases of Canadian goods and services for Vale’s operations outside Canada, or to support Vale exports involving signed contracts with Canadian suppliers.
Vale owns the former Canadian nickel-mining giant Inco, which has extensive operations in Canada, and international operations.