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Xstrata Nickel shuts down Montcalm indefinitely

What was once viewed as a temporary shutdown of Xstrata Nickel's Montcalm mine in Timmins has now become an indefinite suspension of mining operations.
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Xstrata's Montcalm mine suspended operations indefinitely due to ongoing safety concerns.


What was once viewed as a temporary shutdown of Xstrata Nickel's Montcalm mine in Timmins has now become an indefinite suspension of mining operations.

"The best we can say is it's not going to be a few weeks," says Montcalm mine manager Keith Bullock. "It's going to be the range of months, but other than that, we can't really speculate."

On March 10, ground failure began 80 metres below surface at the rear of the mine's two main stopes, causing sufficient damage to force the stoppage of work on that particular block. With mining activity still ongoing at a lower part of the mine, officials grew concerned about worker safety and the potential for problems in the upper block to impact those working below.

With ground failure continuing to occur, officials decided on March 28 to halt mining operations altogether. Once mining stopped, the ground failure subsided "considerably."

In the intervening months, information was gathered on the stope itself to determine what exactly has been occurring, and what can be done to mitigate the issue.

Geotechnical investigations and monitoring are underway by internal staff with a panel of external experts from around the globe experienced in bulk mining methods.

Initially, it was expected it would be a matter of weeks before safe working conditions would return. However, Xstrata is still in the midst of investigating its options, examining the possibility of returning to the mine and what would happen if this return is not feasible.

The move impacts contractor J.S. Redpath Limited, whose 90 staff had been operating the site. Twelve staff will remain to maintain the water treatment plant and various electrical systems.

Trucking firm North-West Transport is also impacted by the move, with 120 workers having previously been assigned to the project to handle off-site material delivery. The company also handled on-site crushing.

Xstrata Nickel's own staff of eight will remain to help complete ongoing evaluations, look after the site, and run the water treatment plant.

"We're trying to work with these guys the best we can to try and understand what our options are because we recognize the big impact it has on these contractors, and I'm sympathetic towards that, but at the time there's no work for them," says Bullock. "It also has some spinoff effects on some of the suppliers in town, unfortunately."

Montcalm, whose mine life was to end in mid-2011, was to produce nearly 9,000 tonnes of nickel contained in concentrate in 2009.

The drop in feed to the Sudbury Smelter is expected to be offset through the continued processing of concentrate from initial ore from Nickel Rim South, Xstrata's Raglan and Australasian operations, and various third-party sources.

Although there may be no impact on the company, Timmins officials say the city will feel the loss of these high-paying positions if they're not replaced in other local mining operations.

"It's a definite blow to the community," says Mayor Tom Laughren. "Even though we knew it didn't have much longevity, it's not one we were thinking we'd have to worry about in this downturn because it was well-established. Those are some 200 jobs that are out of that spot now, so we're definitely going to feel it."

While the timing of the shutdown is equally unfortunate given the economic times, Bullock emphasizes that Montcalm was a low-cost producer. At 300 metres, the relatively shallow depth of the mine meant ramps could be used to access the material instead of a shaft.


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