Vale Suspends Sudbury Nickel Operations


July 1 marked one month since union miners at Vale Canada’s nickel mining operations in Sudbury decided to strike. The company suspended operations after a proposed five-year contract was rejected by the United Steelworkers. United Steelworkers (USW) Local 6500, representing roughly 2,450 production and maintenance employees in Sudbury, voted to reject the company’s offer despite the unanimous endorsement of that deal by the union bargaining committee.

Vale said it has implemented contingency plans to preserve the integrity and safety its operations. The company will continue discussions with USW in the hopes that both sides can find a path toward a ratified agreement in the near-term. In related news, Vale mined first ore from the underground expansion project at its Voisey’s Bay operation. The mine, which has been producing nickel from an open-pit operation since 2005, is transitioning to underground operations with the development of two underground mines: Reid Brook and Eastern Deeps.

Vale reported first ore from Reid Brook on June 15. The two mines will extend the life of Vale’s Labrador operations and achieve production of 40,000 metric tons per year (mt/y) of nickel in concentrate at a peak production rate of 2.6 million mt/y by 2025, with about 20,000 mt copper and 2,600 mt of cobalt as byproducts. The underground expansion project is 65% complete, with approximately $1.26 billion invested so far. Eastern Deeps start-up is expected in 2022.


As featured in Womp 2021 Vol 07 - www.womp-int.com