Anglo Pacific has agreed to buy a share of cobalt production from Vale’s Voisey’s Bay mine in Canada, giving the mining royalty and streaming company exposure to the key battery metal for the first time, it said on Wednesday

Under the deal, Anglo Pacific will buy a company holding a 70% interest in part of the mine’s cobalt production from private equity sellers for $205 million cash and a contingent consideration of up to $27 million.

Voisey’s Bay, in Canada’s remote Labrador province, produces nickel-cobalt-copper concentrate and copper concentrate. Vale shuttered the mine in mid-March due to the COVID-19 pandemic, and restarted operations in early July.

Anglo Pacific’s profits derive from its acquisition of royalties that give it the right to a share of revenue, profit or production. It owns coking coal, copper, iron ore, and uranium royalties.

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Source: Reuters

Reported by Helen Reid. and Edited by Mark Potter