Vale announces $3.4B investment in Sudbury operations

A $3.5 billion investment by Vale into multiple capital projects is being heralded by the city's mayor as a sign the city is recovering from the economic downturn.

In a press release issued Nov. 17, Mayor John Rodriguez said the investment in Totten Mine, Clarabelle Mill, the Copper Cliff Smelter and Copper Cliff Deep means "Vale is positioning the company for a bright future in this city."

At the same time, Vale is phasing out its mill and smelter in Thompson, Manitoba. Mineral reserves in Thompson have not been sufficient to operate the smelter and refinery at full capacity for some time, stated a press release from Vale.

The five-year investment program in Sudbury will see Vale spend more than $10B on strengthening and expanding its Canadian operations, a press release released by Vale on Nov. 17, stated.

Some projects are already underway and will expand in 2011, Tito Martins, CEO Vale Canada, said.

"These investments represent an important building block for the future of our Canadian operations," he said. "The dollars invested here will improve environmental performance, unlock new market opportunities, increase efficiencies and strengthen our global competitiveness for years to come."

Vale stated it would spend about $200 million on improving recoveries at Clarabelle Mill. Construction of a brand new building and a new floatation system are planned for the site, with construction slated to begin in March 2011 and reach completion in 2012.

Totten Mine will see a $360 million investment to complete work to open the new mine. Located near Worthington, the mine is expected to be up and running in late 2011, and will provide jobs for about 130 people,.

The Copper Cliff Deep project, which was suspended, will be re-evaluated. The project would target 126 million metric tonnes of ore in and around Copper Cliff and Creighton Mine, the press release noted.

Finally, Vale will invest up to $2 billion in the "most significant environmental investment ever contemplated in the Sudbury Basin."

The Atmospheric Emissions Reduction project will bring down emissions of sulphur dioxide more than 80 per cent, the press release from Vale stated. The project is expected to begin in 2012, and be finished in 2015. The job will see anywhere from 800 to 2,000 workers on the project at any given time.

"This investment...means more jobs and economic activity for Greater Sudbury," Rodriguez stated. "This will mean that the steady growth we have witnessed over the past four years will continue into the future."