SAO PAULO, July 6 (Reuters) - Brazilian miner Vale SA said on Monday it expects to record a $400 million impairment charge for the period ending on June 30 related to the planned sale of its long-troubled nickel and cobalt operations on the Pacific island of New Caledonia.
Vale said in May that it was in talks to sell the mine, which has faced technical setbacks, a chemical spill and protests, to Australia’s New Century Resources Ltd.
In a separate filing, Vale said Vale Overseas, a subsidiary, was preparing the sale of bonds maturing in 2030 that will be guaranteed by the parent company. Proceeds from the sale would be used for general corporate purposes, the miner said.
The banks that will coordinate the sale include Banco do Brasil, Citigroup, Credit Agricole, Mizuho, MUFG and SMBC Nikko, the filing said.
At the same time, Vale said it continues to evaluate the impact of the coronavirus pandemic on its business as the number of COVID-19 cases and deaths has increased significantly in Brazil, where most of its operations are concentrated.
“The COVID-19 situation is evolving and could have a material adverse impact on us,” Vale said, citing potential significant disruptions of production or supply chains, as well as a potential decline in customer demand. (Reporting by Ana Mano; Editing by Dan Grebler)