Good times for Greater Sudbury, for its business community and for its residents, are going to keep on rolling, said Fred Stanford, president Vale Inco Ontario Operations Thursday.
He addressed a packed luncheon at the Chamber of Commerce President's Series Luncheon at the Holiday Inn.
“The world simply can't get enough nickel..we are the second largest
nickel producer in the world, and well on our way to becoming number one,” said Stanford.
Currently the company has the best contained nickel reserve in the world at 11.6 million tonnes, almost double that of its nearest competitor-Norilsk Nickel which has 6 million tonnes.
Despite a faltering U.S. economy, Stanford was bullish on the prospects for his company.
“Global nickel demand growth is currently forecast at 5 percent per year, driven primarily by the unprecedented impact of China-which is now the world's largest stainless steel producer. That is wonderful for our industry,” said Stanford.
“India is following behind too so it sure looks good.”
Vale Inco increased exploration in the Sudbury Basin to $50 million in 2007, up 50 percent from 2006. A $400 million investment is a go for opening Totten Mine. Two old shafts at North and South Mines are to be replaced so the company can mine deeper and access ore bodies including the Kelly Lake deposit. Copper Cliff Deep could be in production as soon as 2013 with a workforce of 450 people.
In June, Vale Inco found that exploration drilling at the Creighton Deep project confirmed significant high-grade mineralization between the 7,000 and 10,500 foot levels. Production there could double from 17 million tonnes to 32 million tonnes, said Stanford.
“That translates into 29 additional years of mining activity at current rates, with the potential of even more to come..and in December, we announced a $132 million investment to develop the 170 ore body at Coleman Mine near Levack. This project is scheduled to begin production by 2012, and will create 76 full-time jobs for 10 years.”
The company plans on ramping up production from 298 million pounds from 250 million pounds in 2007 by spending up to $600 million in capital expenditures.
These numbers mean a lot to the mining service sector, said Dick DeStefano, executive director of Sudbury Area Mining Supply Services Association (SAMSSA).
“I just did a survey two weeks ago. The growth in our mining cluster, which employs 15-17,000 people, is 20 percent in one year in terms of sales and employees,” said DeStefano.
That growth will continue if Vale Inco continues to source from the local mining cluster first and from Brazil last, he said.
DeSteffano also sensed that Vale Inco was putting additional effort into community relations.
“I think Vale Inco is emphasizing its corporate responsibility so people do not get angry with the newly named company. That is a positive sign.”
The good times in mining are spilling over into the community, said Stanford.
“Just check out our real estate market, second hottest behind Fort McMurray, Alberta.
In addition, he noted the drastic environmental improvements from the recent $4.5 million greening of Gatchell's slag heaps to the billion dollar investment in pollution reduction since 1986.
“We had a fellow who had not been here in 20 years. He was flabbergasted at the positive improvements in the landscape.
