Change necessary for 'sustainable future:' Tito Martins

Succeeding in the business world depends on a willingness to change, as it can lead to a “better, more sustainable future,” according to Tito Martins, president and CEO of Vale Canada Limited.

“But change, as we saw all too clearly during the 12-month strike we endured here in Ontario, is still viewed by many with fear,” Martins said, speaking at the Maintenance Engineering/Mine Operators' (MEMO) Conference at Laurentian University's Fraser Auditorium Oct. 25.

Martins is the honourary chair of the MEMO conference's organizing committee. The conference started Oct. 24 and ends Oct. 27.

He said the challenge is “creating that compelling vision” for employees and communities “who are often more comfortable with what they know today than with what may come tomorrow.”

Martins said the company is changing its relationship with employees and unions.

“Part of that solution is establishing clear expectations and clear accountability, and clear lines of communication between our supervisors and the employees who work for them,” he said.

“Our employees and managers are among the best in the world, and if anyone is up to the task of creating a prosperous future, they are.”

Martins spoke about the company's plans for investing in its Sudbury operations over the next five years, including improvements to Clarabelle Mill and spending $1.5 to $2 billion to reduce its atmospheric emissions.

Coming out of the recent recession and the nearly year-long strikes in Sudbury and Port Colborne, Ont., the future of Vale's nickel business is looking good, Martins said. Sudbury is now back to full production, and the economy seems to have rebounded, he said.

But the company is also facing many challenges, he said.

“The Sudbury basin continues to offer up new mineral wealth,” Martins said.

“But the ore that's easy to find has been found, and ore that is easy to mine has been mined. Today, we find ourselves going ever deeper in our existing mines, further away from infrastructure. More work is required to transport the ore to the surface.

“We are mining lower grades than we have in the past, and we are sinking more money into exploration to extend the life of today's mines, and to discover the mines of tomorrow.”

Mature sulphide nickel deposits such as those found in Sudbury are facing competition from laterite nickel deposits found closer to the surface. Lower-cost alternatives to nickel such as nickel pig iron are also presenting a challenge to traditional nickel producers, he said.

When asked by Northern Life about the nearly 15-month-long strike at the company's Voisey's Bay, Nfld. plant, Martins said he's “disappointed” the labour dispute has not been resolved.

“We made a very good offer to the union, and we had help and support through mediation from the provincial government, and unfortunately the unions did not accept what we proposed.”

The government of Newfoundland and Labrador has launched an industrial inquiry to look into the labour dispute, although it will not be able to compel a settlement. Among those running the inquiry are Sudbury lawyer Brian Gatien.

Despite these challenges, Martins said Vale's goal is to become the “biggest and best” mining company in the world.

“Canada and Sudbury, specifically, have an important role to play in that pursuit,” he said. “Canada has much to offer to Vale, and Vale has much to offer to Canada. We plan on being here for a very long time.”