1902
Inaugurated
About the Operation
Located in Swansea, Wales, the Clydach Nickel Refinery has been a beacon of metallurgical innovation since its founding in 1902 by German-born chemist and industrialist Ludwig Mond (1839–1909).
Mond’s discovery of the carbonyl process — a revolutionary method for purifying nickel — laid the foundation for what would become one of the oldest, continuously operating nickel refineries in the world.
In the 1920s, the refinery entered a new chapter when it was acquired by Inco Limited, a Canadian mining company and global leader in nickel production. This transition resulted in the modernization of the refinery and international collaboration, including the launch of commercial nickel powder production in 1943.
In 2006, following Vale’s acquisition of Inco, the refinery became part of the Vale Base Metals (VBM) global network. Today, it stands as the only nickel refinery operating in the United Kingdom, refining nickel oxide sourced from VBM operations in Canada and Indonesia, producing some of the purest nickel products available anywhere in the world.
Key Metrics
Nickel
Main Products
~ 193
Employees
High-Quality Products
Clydach is renowned for its use of the carbonyl refining process, also known as the Mond Process. This method involves reacting nickel oxide with carbon monoxide to form nickel carbonyl gas, which is then decomposed at controlled temperatures to yield 99.9 per cent pure nickel in powder and pellet form.
The process is highly efficient and environmentally sound:
• Low energy consumption
• No polluting waste products: carbon monoxide is recycled
• Controlled emissions: toxic intermediates are managed at parts-per-billion levels
Clydach’s eight decomposer towers allow for precise control over powder morphology, producing both spiky and filamentary nickel powders tailored for advanced applications.
The refinery produces Class 1 nickel in powder and pellet form, ideal for:
• High nickel alloys
• Plating and stainless steel
• Electric vehicle batteries
• Aerospace and defense
• Electronics and 3D printing
Environmental Initiatives
Our remediation work, coupled with good water quality in the River Tawe and Swansea Canal, which hug our property, has earned us recognition by Natural Resources Wales (NRW), a governing body that sets and inspects the parameters by which we operate.
Further, to continuously improve environmental performance whilst meeting our business objectives, we operate to the internationally recognised, best-in-class standard ISO 14001. Every year, we are audited by an external third party to ensure we are meeting the standard and we are always striving to do better.
Innovation Highlight
On site, we have an algae farm — a collaboration with Swansea University’s RICE (Reducing Industrial Carbon Emissions) Group. Carbon dioxide (CO₂) emissions from the nickel refining process are being captured and used to grow algae at the farm.
The project aims to demonstrate that industrially derived CO₂ can be captured and rerouted for growing algae, which, in turn, produces high-value products in the form of protein and pigments.
Tax Incentives
We take advantage of tax incentives in some of the jurisdictions in which we operate, which are available to all taxpayers.
In some cases, tax incentives are dependent on meeting specific threshold criteria related to employment or economic activity within our broader supply chain. None of the regimes under which VBM has been granted incentives is noted by the OECD as being a harmful tax practice.
Tax policy
Vale Base Metals Limited
Our Business
Vale Base Metals Limited (the “Company”), a UK-incorporated company, and its subsidiaries
(collectively referred to as “the Group”) are engaged in the exploration, extraction, milling,
smelting, refining, distribution, and marketing of copper and nickel products. This includes
copper concentrate, copper cathode, high-purity class I, and class II nickel products. The Group
also produces cobalt, precious metals, and platinum group metals (PGMs) as by-products of
copper and nickel mining and processing. The Group primarily sells its products in North
America, Europe, and Asia.
Vale Base Metals Limited is the holding company of the Group, with headquarters in the
United Kingdom. The Group’s primary mining and processing facilities are in Canada and Brazil,
with stand-alone refineries in the United Kingdom and Japan.
For more information on our global business, please click here.
Our Approach to Tax in the UK
Our approach to tax supports our business strategy and balances the various interests of our
stakeholders, including investors, governments, our people, customers, consumers, suppliers,
and the communities in which we operate. It is built on principles of compliance, transparency,
and sustainable value creation. We aim to manage our global tax position effectively while
maintaining our commitment to responsible tax practices and risk management.
Key Pillars
1) CORE BUSINESS PRINCIPLES
We manage our tax affairs effectively and actively, striking a balance that supports our
business strategy while creating consistent long-term value for our stakeholders where we
operate. Our business operations are guided by economic fundamentals and market realities,
with tax considerations integrated into our overall cost structure.
2) TRANSPARENCY AND COLLABORATION WITH AUTHORITIES
We value transparency and openness in our relationships with tax authorities. We maintain an
open, transparent, and collaborative relationship with HMRC in the UK. We are in regular
contact with our Customer Compliance Manager at HMRC and proactively discuss significant
tax matters and business developments. We proactively disclose relevant tax information and
work collaboratively to resolve any issues. We approach these discussions professionally and
efficiently to reach an agreement on tax obligations.
3) TAX PLANNING, RISKS AND TRANSACTIONS
When considering tax planning, we limit our activities to jurisdictions where we maintain
genuine substance and commercial presence, focusing on business-driven structures rather
than tax-driven schemes. We aim for certainty in our tax positions. In some cases, when the
law is unclear, we will have effective frameworks in place to identify, monitor, control, and
manage our tax risks, considering a position that can be accepted upon examination by the
relevant tax authorities. External tax advice is sought in relation to areas of complexity or
uncertainty to support in complying with our UK and global tax strategy.
4) TAX INCENTIVES
We utilize tax incentives when they apply to our business operations, which are available to all
taxpayers, and align with relevant tax legislation, such as government programs designed to
stimulate economic growth. We ensure our application of these incentives aligns with their
intended statutory and regulatory purpose. We do not maintain operations in OECD-defined
“tax havens” without a legitimate commercial purpose.
Why does taxation matter to our business?
Our goal is to ensure that our global operations remain competitive and generate sustainable
shareholder value. Our strategy supports significant investments in our mines and surface
plants, enabling us to grow the business. Ultimately, we aim to deliver efficient growth,
consistent value creation, credibility and trust, and engagement for all our stakeholders.
Our approach to taxation aligns with our ambitions and business strategy while balancing the
diverse interests of our stakeholders, including investors, governments, employees,
customers, suppliers, and the communities in which we operate.
We advocate adopting international best practices and governance standards. We actively
support initiatives that establish clear, fair, and consistent taxation for global companies like
ours. While tax can be complex and uncertain, we recognize its critical importance for all our
stakeholders.
We understand the significance of our social and economic impact on the communities where
we operate. Our total economic contribution, including taxes, can play a vital role in wealth
creation for these communities. Our tax contributions encompass corporation tax and import
duties, and we also collect certain taxes on behalf of governments, including excise duties and
VAT. Furthermore, our economic contribution includes jobs, investments, purchases of goods
and services, and the transfer of knowledge and skills.
We ensure our business has the necessary mechanisms to comply with our tax principles. We
manage and report our tax affairs to ensure compliance with the law and with international
best-practice guidelines, such as international accounting standards and OECD standards. Our
Code of Conduct sets the expectations for everyone working at or for VBML, and our Global
Tax Policy is grounded in its principles.