Vale said in a securities filing on Tuesday it will suspend operations at its Sudbury, Canada nickel mine, after its proposal for a five-year contract was rejected by the United Steelworkers union.
United Steelworkers Local 6500, which represents 2,600 workers at the mine, said in a statement that 70 per cent of those who voted were in opposition to the Vale offer.
Vale said in the filing that USW Local 6200, which represents employees at its separate Port Colborne refinery, were favourable to the proposed deal.
Sudbury produced 43,200 tonnes of nickel last year, representing a bit less than half of Vale’s overall Canadian output of the base metal.
Vale said it continues to negotiate with the Local 6500.
