Shutdowns and early retirement packages for Ontario, Newfoundland and Labrador's nickel operations have been announced by Vale Inco as the company responds to global economic uncertainties in the market.
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Sudbury, Ontario based-Copper Cliff South mine (CC South) will be shutdown for an undetermined period of time. The operation will be suspended from January onwards. The CC South output contributes to the production of 8,000 metric tons per year of finished nickel.
Newfoundland and Labrador's Voisey’s Bay operations in Canada, which comprises of the Ovoid mine and a processing mill, will be shutdown during the entire month of July 2009. Voisey’s Bay produces nickel and copper concentrates. In the first nine months of 2008 its operations contributed to the production of 58,000 metric tons of finished nickel and 39,000 metric tons of copper in concentrate.
Vale has also decided to postpone the start up developments of the Copper Cliff Deep (CC Deep) project for a period of 12 months. In the capex budget for 2009, the development of CC Deep has a total investment cost of US$ 814 million, of which US$ 138 million was budgeted to be spent in 2009. CC Deep involves the replacement of the current shafts in the Copper Cliff North and Copper Cliff South mines by one single shaft.
Vale is also launching an international voluntary retirement program for eligible staff employees. The company says it will pursue other initiatives to reduce costs in the face of uncertain market conditions.
December 4th, 2008
