Global mining giant Vale's net income for 2009 hit US$5.3 billion, down from the $13.2 billion seen in 2008, according to the company's financial reports.
Strike-related shutdowns at the company's Sudbury and Voisey's Bay operations sunk Vale's sales of nickel, producing revenues of $741 million in the fourth quarter, down from $963 million in the previous quarter.
Total operating revenues from nickel dropped from $5.9 billion in 2008 to $3.2 billion in 2009. Copper revenues also decreased, dropping from $2 billion in 2008 to $1.1 billion in 2009.
In the report, the company says it expects a strong demand for nickel in 2010. This, combined with the need to feed production of plating powder and pellets at its Clydach refinery in Wales, are among the reasons the company is partially resuming Sudbury operations, according to the report. Operations at the Copper Cliff smelter are initially set to begin at 60 per cent capacity.
Also, the resumption of operations at Garson and Coleman as well as the Clarabelle mill by year's end "will allow us to produce copper concentrates to mitigate the shortfall in our Canadian operations," according to a separate production report.
Regarding the strike, the report says the company's proposal to the union "aims to provide the right incentives for labour productivity growth," whose goal is to build up the foundations of long-term nickel-industry competitiveness.
China represented the lion's share of Vale's global business in the fourth quarter, responsible for 30.4 per cent of the company's revenues. This was followed by Brazil at 18 per cent and Japan at 13.4 per cent.
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