Vale and Xstrata are teaming up on a new copper mining initiative that will extend the life of the Fraser Mine in Sudbury by an estimated seven years and return 75 laid-off employees to work.
In a letter to Xstrata employees, Marc Boissonneault, vice-president of Sudbury operations, says the partnership is a response to a high demand for copper.
“Under the terms of this partnership, we will utilize exisiting Fraser Mine infrastructure and our recalled employees to mind Vale copper ore,” he says in the letter. “The Vale ore body is only currently directly accessible from Fraser Mine's headframe and supporting infrastructure. Xstrata will process the ore and concentrates.”
Through the alliance, Xstrata will provide excess fresh air ventilation from Fraser Mine to Vale's Coleman Mine, a move that Boissonneault says will enable “extended productive capacity” at Coleman's 170 Ore Body mining project, which is set to begin production in 2012.
Copper mining at Fraser Mine was restarted last spring, and Boissonneault says the company is now in a good position to pursue the new copper-mining venture, which is slated to begin in July.
The life of Fraser Mine is now estimated at seven years, to 2021, well beyond the current three-year plan.
“Our business transformation remains a key priority for me and the Sudbury management team as we look ahead to other future growth options that will be very much dependent upon our ability to deliver strong results against our objectives,” Boissonneault says.
“I am truly excited by this business development initiative and the opportunity that is brings to Sudbury operations and the Fraser Mine team in particular.”
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