Thompson, Manitoba – A consortium of investors has secured a deal to acquire control of Vale Base Metals’ Thompson nickel mine complex, injecting up to , $280 million into the operation and ensuring its continued operation. The agreement, announced , positions the mine for expansion and secures the jobs of approximately 1,000 workers.
The new ownership structure will see Toronto-based Exiro Minerals, New York City-based Orion Resource Partners and the Canada Growth Fund collectively hold an 81.1% stake in the newly formed Exiro Nickel Company. Vale Base Metals will retain a minority ownership position of 18.9%. The deal is expected to close by the end of , with Vale continuing to manage day-to-day operations until then.
“Today marks the launch of a new Canadian nickel company,” said Vale Base Metals CEO Shaun Usmar in a statement. “Together, we’ll become a new company, with new leadership and a new name.” The sentiment was echoed by Shastri Ramnath, CEO of Exiro Nickel, who described the acquisition as an opportunity to build “the next great Canadian nickel producer.”
Securing a Key Asset
The Thompson mine, discovered in 1956 and commencing operations in 1961, is a significant underground nickel mining operation in Canada. Vale acquired the mine in 2006 as part of its purchase of Inco. The sale follows a strategic review initiated by Vale in early aimed at securing a long-term future for the Thompson nickel belt.
The investment is particularly welcome in Thompson, a community heavily reliant on the mine for employment. Mayor Colleen Smook expressed relief and optimism, stating the deal provides “peace of mind, stability” and ensures the continued extraction of a valuable resource. “It brings just peace of mind, stability. We know that we have the nickel. We know we have the product here. It was just to get a company coming to work with us so that they could get that ore out of the ground,” she said.
No Layoffs Planned, Expansion on the Horizon
A key concern surrounding the potential sale was the possibility of job losses. However, the new ownership group has explicitly stated Notice no plans for layoffs. Exiro’s Shastri Ramnath emphasized the intention to expand operations and increase hiring. “We are actually more concerned about being able to ramp up. We’re more concerned about being able to attract people to the operations, because we are going to need them,” she said.
The expansion plans include acquiring exploration properties near Thompson and aiming to double production. Current mine resources suggest a potential lifespan of at least 20 years, according to Ramnath.
Critical Mineral and Manitoba’s Potential
The investment in the Thompson mine aligns with growing recognition of nickel as a “critical mineral” essential for the production of batteries, manufacturing, and clean technologies. Manitoba Premier Wab Kinew highlighted the importance of the mine to the province’s economy, particularly as it transitions towards greater reliance on natural resources and private sector investment.
“When that super cycle bounces back and commodity prices go up again in the future, they’ll make money off of it,” Kinew said, referencing the cyclical nature of commodity markets. He added that the deal would help maintain housing values and incomes in the Thompson community.
According to Mostafa Fayek, acting department head of earth sciences at the University of Manitoba, Manitoba is rich in critical minerals. “The federal government listed 34 critical minerals for the Canadian inventory. Thirty-one of them are in the province of Manitoba,” he stated. These include lithium, graphite, nickel, cobalt, copper, and rare earth elements.
Union Support and Future Outlook
The United Steelworkers Local 6166, representing workers at the mine, also welcomed the news. Union President Warren Luky expressed relief that jobs would be preserved and highlighted the promise of development work to access deeper ore bodies. “A lot of people were starting to wonder what they should do — whether to stay or whether they start looking for another job,” Luky said. “With this announcement, there’s a promise to go and do the development work that will see the deeper ore body getting mined, which means work for everybody.”
The transaction underscores the increasing focus on securing domestic sources of critical minerals, particularly as demand grows for electric vehicle batteries and other clean energy technologies. The new ownership group aims to capitalize on this trend, positioning Exiro Nickel as a key supplier to Canada and its allies.
