Vale to spend $150M to extend life of its Manitoba operations

Sudbury -

Vale Ltd. announced Tuesday it will spend $150 million to extend its current mining activities in Thompson, Man., by 10 years.

And in a news release, the company said "aggressive exploration drilling of known orebodies" could extend operations into 2040 or longer.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” Mark Travers, executive vice-president for base metals with Vale, said in the release.

“It is significant news for our employees, for the Thompson community and for the Province of Manitoba. The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel, positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

The Thompson Mine Expansion, as the project has been dubbed, is a two-phase project. Phase 1 announced Tuesday includes upgrades such as new ventilation raises and fans, increased backfill capacity and additional power distribution.

The changes are forecast to improve current production by 30 per cent, the company said.

In addition to the Thompson Mine Expansion, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150-million investment is just one part of our ambitious Thompson turnaround story," Dino Otranto, chief operating officer for Vale’s North Atlantic base metals operations, is quoted as saying in the release.

'A long future for the Thompson operations'

"It is an indicator of our confidence in a long future for the Thompson operations … Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

While announcing investments in Manitoba, workers in Sudbury have been on strike since June 1. One of the big issues for the 2,400 striking workers is benefits for new hires after retirement.

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to date in the company’s history.

Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale base metals in Manitoba,” Gary Annett, GM of Vale’s Manitoba operations, said in the release.

Vale’s global base metals business is among the world’s largest producers of high-quality nickel and an important producer of copper and responsibly sourced cobalt. With headquarters in Toronto, it has operations in Newfoundland & Labrador, Ontario, Manitoba, Indonesia and Brazil.