Vale to suspend Frood nickel/copper operations in Sudbury
The historic Frood nickel and copper mine will suspend operations by year-end and could be closed on a permanent basis as Vale focuses on more competitive reserves.
RENO (MINEWEB) -
Vale has announced it will close the century-old Frood nickel and copper mine in Sudbury, Ontario by the end of this year.
The Brazilian miner expects to make up for the loss of Frood's annual production of 3,200 metric tons of nickel and 2,900 metric tons of copper by increasing production at other mines.
The 85 people working at Frood will be "redeployed to other mines that are more competitive" and produce higher quality copper and nickel. Frood is part of the Stobie mining complex.
McPhee told Reuters that the decline in nickel prices was a factor in the decision to close the mine. London nickel now trades around $17,000 a tonne, while copper has traded above $9,000 a tonne for most of last year.
Despite the closure of Frood, Vale spokespersons have stressed the company remains "strongly committed to our future in Sudbury."
In an interview with The Sudbury Star, Vale spokeswoman Angie Robson said, ‘We do have some challenges and issues for Stobie Mine and our costs there, and we will be addressing that." She also said Vale's Birchtree nickel mine in Manitoba under consideration to be placed on care and maintenance mode as of August 2013.
