Thompson Nickel Mine Gets a Second Life: $280 Million Investment Secures Future of Manitoba Operations
A significant investment is poised to revitalize nickel mining in Thompson, Manitoba, as Vale Base Metals partners with Exiro Minerals Corp., Orion Resource Partners LP, and the Canada Growth Fund. The consortium will inject up to $280 million (US$200 million) into the Thompson Mine Complex, ensuring continued operations and potentially expanding production.
A New Ownership Structure: Exiro Nickel Company Takes the Helm
The existing operations will transition under a new entity, Exiro Nickel Company. Exiro, Orion, and the Canada Growth Fund will collectively hold an 81.1% stake in the new company, while Vale Base Metals will retain a 18.9% minority ownership. This strategic move follows a review of Vale’s Thompson operations initiated in January 2025.
No Layoffs Planned: A Boost for the Thompson Community
Crucially, the new ownership group has committed to maintaining the current workforce of approximately 700 employees and 300 contractors. Exiro’s CEO, Shastri Ramnath, emphasized a focus on expansion and hiring, signaling a positive outlook for the local economy. “We are more concerned about being able to ramp up…being able to attract people to the operations, because we are going to need them,” Ramnath stated.
Expanding Production and Exploring Untapped Potential
The investment isn’t just about maintaining the status quo. The consortium plans to double production at the Thompson Mine Complex, leveraging the significant resource potential of the 135-km long Thompson Nickel Belt. The mine has a rich history, operating since 1956, and current resources suggest a potential lifespan of at least 20 years.
Nickel: A Critical Mineral for a Sustainable Future
This investment arrives at a pivotal moment, as nickel is increasingly recognized as a “critical mineral” essential for the production of batteries, clean technology, and manufacturing. Canada is positioning itself to grow a key supplier of these vital resources. According to the Manitoba Northern Relations Minister Glen Simard, “Nickel is a critical mineral…The world needs it, and it needs Manitobans to produce it responsibly.”
Vale’s Continued Role: An Offtake Agreement Ensures Stability
Vale Base Metals will continue to play a role through a signed offtake agreement, securing the nickel concentrate produced at the Thompson Mill. This agreement solidifies Vale’s position as Canada’s leading nickel producer and provides a stable market for the mine’s output.
A Win for Northern Manitoba and Indigenous Communities
The deal has been met with enthusiasm from local leaders. Thompson Mayor Colleen Smook described the investment as bringing “peace of mind, stability” to the community. Exiro Nickel has also committed to honouring all existing agreements with local stakeholders and Indigenous communities, ensuring responsible and sustainable operations.
Transaction Timeline and Approvals
The transaction is expected to close by the finish of 2026, subject to customary regulatory and government approvals. Until then, Vale Base Metals will continue to manage day-to-day operations at the mine.
FAQ
What is a critical mineral? Critical minerals are essential for economic and national security and are at risk of supply chain disruptions.
Will this investment create new jobs? The consortium plans to expand operations and hire more workers, though specific numbers haven’t been released.
Who is Exiro Nickel Company? Exiro Nickel Company is a newly formed company owned primarily by Exiro Minerals Corp., Orion Resource Partners LP, and the Canada Growth Fund.
What is the Canada Growth Fund? The Canada Growth Fund is a federal investment fund operated at arm’s length from the government, focused on building a stronger, more sustainable economy.
When will the deal be finalized? The transaction is expected to close by the end of 2026, pending regulatory and government approvals.
Did you recognize? Manitoba possesses 31 of the 34 critical minerals identified by the federal government.
Explore more about Canada’s critical mineral strategy here.
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