Low metal prices and declining ore grades were factored into Vale’s decision to suspend operations at its Stobie Mine in Sudbury.
The nickel miner announced March 10 the mine was being placed on care and maintenance later this year. Approximately 230 employees will be affected.
“While efforts will be made to minimize impacts on people, Vale indicated that the decision will likely result in workforce reductions,” said a Vale news release.
No specifics were provided by the company on the transition to care and maintenance.
Vale said a transition team will design and guide the process for Stobie in accordance with the requirements of existing collective agreements.
The company said the mine’s future has been under review for some time citing metal prices, “ongoing market challenges, and recent seismic activity that restricted production below the 3,000-foot level.
“This is a necessary decision, but a sad one,” said Stuart Harshaw, Vale’s vice-president of Ontario operations, in a statement. “Stobie has a rich history and has been integral to our success for more than a century. However, after more than 100 years of operation, the mine is approaching the end of its natural life. The low grades at Stobie are no longer economical to mine in today’s challenging price environment.”
In more than 120 years of production, Stobie produced more ore than any other mine in the history of Sudbury, according to Vale.
Stobie began as an open pit operation in 1890. Underground operations started in 1914. With more than 375,000,000 tonnes produced over the years, more ore has been mined out of the Frood-Stobie complex than any other mine in the Sudbury Basin. The suspension of operations at Stobie will result in a reduction of approximately 4-6 kilotonnes of nickel and 5-8 kilotonnes of copper production annually.
“Vale is committed to our future in Sudbury,” said Harshaw. “Over the past decade, we have invested $4.7 billion to modernize and upgrade our operations. In this prolonged period of uncertainty in the base metals market, we will continue to monitor economic conditions very closely and make disciplined operational decisions in the best long-term interests of our company, our employees and the community.”
