Mineral Products
The mining industry in Newfoundland and Labrador produces more than a dozen mineral commodities that contribute to both our economy and quality of life. Some of the products produced by the industry vary from aggregates used in road construction to iron used in structural steel; limestone used in agriculture; nickel used to produce stainless steel; granite used in counter tops, and copper wire for use in electrical generation and distribution.
Value of Mineral Production
Newfoundland and Labrador is on pace to produce approximately $5.48 billion in mineral shipments during 2008. Since 2004 there has been a seven-fold increase in the value of Newfoundland and Labrador mineral shipments. This can be mostly attributed to an increased value of shipments from Voisey’s Bay and a higher price for iron ore from western Labrador. A diversification of the minerals produced in the province due to new mine openings has also been a contributing factor.
Employment
Direct employment in the Newfoundland and Labrador mining industry is projected to be 4,057 person years in 2008, an increase of 200 over the 2007 estimate. The projected employment increase will result from the expansion at IOC, opening of the Pine Cove gold mine, and reactivation of the Beaver Brook antimony mine.
Mineral Exploration Expenditures
In line with increases in global metal prices and local mineral production, the level of exploration investment in the province has increased dramatically since 2005 when it stood at $48 million. In 2006, approximately $101 million was spent in Newfoundland and Labrador on mineral exploration and deposit appraisal. The total expenditure for 2007 is estimated to be $148 million, and the forecast for 2008 is also $148 million.
| Anaconda Mining Inc. | | Profile | Anaconda Mining Inc., a Vancouver-based junior mining company, announced on May 5, 2008 that production has commenced at the Pine Cove Gold mine located in the Ming’s Bight area of the Baie Verte peninsula. The Property is currently under option from New Island Resources, with Anaconda holding a 60% interest attained by arranging project financing and successfully bringing it to production. Anaconda is project operator, and as such retains an additional 5% management fee.
The Pine Cove deposit was discovered in 1988 and since then exploration work has delineated 2,332,676 tonnes of indicated ore grading 2.76 grams gold per tonne for 207,000 ounces of gold. Inferred resources total 66,700 tonnes grading 2.43 grams gold per tonne for 5,200 ounces of gold.
During 2005, in an effort to reduce the capital cost of building a mine/mill complex at Pine Cove, Anaconda redesigned its original mine plan from a 1,000 tonnes/per day operation to a 500 tonnes/day operation. This reduction in mill throughput would also extend the mine life from 6 to 12 years. The project will be a small open pit mine using contracted excavators and trucks. Ore will be processed at an on-site mill that has been constructed.
Groundbreaking at the site took place early in July, 2007 following government approval of Anaconda’s mine development plan. Anaconda finished the construction phase and began commissioning of the Mill in April 2008. On July 23, 2008, Anaconda Mining announced the first gold pour at the Pine Cove mine. The Pine Cove Mine is currently working toward, but has yet to attain, commercial production. The project is expected to employ approximately 44 people during operation: 20 in the open pit, 15 in the mill, and 9 administration staff. The total capital investment to construct the mine, mill and related infrastructure was $7.0 million, and the operating cost of the mine is expected to be $26/tonne of ore. This is resulting in significant economic benefits to the region that will be felt for years to come. |
| Atlantic Barite Limited | | Profile | | Atlantic Barite Limited was incorporated in 2004 by Pennecon Limited and Swallow Services Limited to extract barite from the tailings of the former base-metal mine in Buchans. Barite is one of the key ingredients in drilling mud for oil and gas wells. Atlantic Barite has reactivated the barite plant, which operated in the 1980s, and has been producing barite by flotation methods since 2006. The plant has the capacity to produce 15,000-20,000 tonnes of barite per year, and has an expected mine life of 15-20 years. The seasonal operation employs approximately 10 people. |
| Atlantic Minerals Limited | | URL: http://www.atlanticminerals.com | | Profile | Located at Lower Cove on the Port au Port Peninsula, Atlantic Minerals Limited operates limestone and dolomite quarries, a modern two-million tonnes-per-year processing plant and deepwater ship-loading facilities. The company produces chemical-grade high-calcium limestone, chemical-grade dolomite, and construction aggregates. Based on 2006 production levels, Aggregates & Roadbuilding Magazine ranked the Lower Cove quarry to be the 20th largest in Canada.
Total shipments of limestone and dolomite from Lower Cove are forecast to be 1.8 million tonnes in 2008. The company employed 118 permanent and seasonal employees at peak production in 2008. |
| Beaver Brook Antimony Mine Inc. | | Profile | In 2008, Beaver Brook Antimony Mine Inc. reactivated the antimony mine, located approximately 43 kilometers southwest of Glenwood, after it had been shut down for 10 years. Roycefield Resources Ltd. opened the mine in 1997, but closed it in 1998 as a result of declining prices. The antimony market has since rebounded.
The stibnite ore is mined underground using the overhand cut and fill method, with development waste and quarried rock used as backfill. The ore is fed to the 450 tonnes-per-day mill which uses a flotation method to produce a concentrate grading about 62%. The stibnite concentrate is trucked to Halifax for shipping to international markets.
With a workforce of approximately 100 people, Beaver Brook Antimony Mine Inc. is a significant employer in the area. The expected life of the mine is approximately 10 years. |
| Burin Minerals Ltd. | | Profile | Burin Fluorspar Ltd., through its wholly-owned subsidiary, Burin Minerals Ltd., is proceeding to reactivate the fluorspar mines at St. Lawrence. Mining the Tarefare and then the Blue Beach deposits, and producing 180,000 tonnes of acid-grade fluorspar annually is envisaged. The estimated total capital requirement of the underground mine and mill is $50 million, of which $7.5 million has been raised. In May 2008 Burin Fluorspar signed an agreement in principle to acquire Rivera Capital Corp. in a reverse merger transaction. This will result in the formation of a new public company in order to raise development funds. This transaction is near completion.
In June 2008, Burin Minerals started a 15,000-meters drilling program to validate its fluorspar mineral deposits. The company expects to complete the drilling by the end of November 2008. In 2009, a bankable feasibility study is expected to be completed, followed by the start of project construction. Production is projected to commence in 2011.
A number of companies operated the fluorspar mines at St. Lawrence for a great part of the period from 1933 to 1990. In 1994, the Government of Newfoundland and Labrador issued a Call For Proposals, and in 1996 Burin Fluorspar Ltd., through Burin Minerals Ltd., acquired a 100% interest in the mining leases and related mill assets at St. Lawrence.
The largest single use of acid-grade fluorspar is in the production of hydrofluoric acid (HF). HF is used in the production of aluminum fluoride, which is used as a flux in the production of aluminum; as a fluorocarbon, used in refrigeration and air conditioning; and as a chemical derivative. Fluorspar prices have risen significantly in the past two years, mainly in response to increased demand, and to a drop in exports of cheap material mainly from China. |
| Continental Stone Ltd. | | Profile | | Continental Stone Limited (CSL) was formed through a partnership between Pennecon Limited and Central Construction Limited, which have many years of experience in the construction and engineering sectors. CSL plans to develop a crushed granite rock quarry and construct a marine shipping terminal north of Belleoram on the province’s south coast. The granite will be quarried and crushed on site and loaded into ships for international markets. The quarry is expected to have the capacity to produce six million tonnes of construction aggregates annually for over 50 years, and provide 80 to 100 full-time jobs. The project has successfully completed both the provincial Environmental Assessment and the Canadian Environmental Assessment process. CSL has submitted a development plan and rehabilitation and closure plan to the provincial Department of Natural Resources. Pending regulatory approval, the company expects to start production in 2010. |
| Crew Gold Canada Ltd. | | URL: http://www.crewgold.com/index.php | | Profile | Crew Gold Canada Ltd. operates the Nugget Pond Processing Facility on the Baie Verte Peninsula. The company processes ore from its Nalunaq Gold Mine in southwestern Greenland. The Nalunaq mine is operated through its subsidiary company, Nalunaq Gold Mines. Shipments are arriving through a temporary port facility at Goodyear’s Cove until a site for a permanent facility is chosen.
The Nugget Pond mill benefits the Baie Verte Peninsula through direct employment, creating 23 new full-time positions and 18 indirect positions through independent contractors. It is estimated that an additional 30 positions have been created through flow-on effects as economic activity in the area increases. |
| Galen Gypsum Mines Limited | | Profile | | Galen Gypsum started mining its Coal Brook gypsum deposit in the St. George’s Bay area in 1999. During the past several years, Galen’s sole market has been Lafarge Gypsum Canada in Corner Brook. Galen’s shipments have been reduced substantially since Lafarge decided in July 2007 to close its wallboard plant in Corner Brook. Galen still trucks small quantities of gypsum to Lafarge, which has a contract to supply stucco to Corner Brook Pulp and Paper Limited. |
| Hi-Point Industries (1991) Ltd. | | URL: http://www.oclansorb.com/ | | Profile | Hi-Point Industries (1991) Ltd. is a peat moss processing company and is the original producer of the oil absorbent "Oclansorb". The company also produces horticultural peat, mainly for export markets. The Bishop’s Falls operation employs 15-20 people seasonally. Hi-Point Industries received the 2006 Exporter of the Year Award for Newfoundland and Labrador from The Department of Innovation, Trade and Rural Development.
The company has developed its Island Pond peat bog near the Gander Bay highway for the production of additional horticultural peat. |
| Hurley Slate Works Company Inc. | | URL: http://www.naturalslate.com/ | | Profile | Hurley Slate Works Company Inc. (HSWC) produces roofing slate, mostly for export markets, and flagging slate for local use. The slate is extracted and processed at the quarry at Nut Cove in Smith Sound, Trinity Bay. The company has increased slate production from 960 tonnes in 2000 to 6,620 tonnes in 2007.
HSWC currently uses diesel generated power to operate plant machinery. The limited capacity of these generators combined with the extra costs associated with generating electricity in this manner impedes the company’s plans for production increases.
Production and employment growth depends on the delivery of three-phase power from the main electrical grid to the HSWC plant as well as economic conditions in the UK and Germany where much of the company’s product is sold. A project spearheaded by the Random North Development Association to bring three-phase power to the area has much of the required financing in place. There are currently about 72 people employed at the site. |
| Iron Ore Company Of Canada Ltd. | | URL: http://www.ironore.ca/ | | Profile | Iron Ore:
The Iron Ore Company of Canada (IOC) commenced producing iron ore from its Carol Lake (Labrador West) project in 1962. Canada’s largest iron ore pellet producer operates several pits, a concentrator, and pellet plant at Carol Lake, port facilities in Sept-Îles, Québec and a 420-kilometer rail line that links the mines and the port. Annual mine production at the open-pit operation is in the 35-38 million tonnes range at an average grade of approximately 40% total iron. Annual production capacity is 17 million tonnes of concentrate of which approximately 13.0 million tonnes are pelletized. IOC’s shipment forecast for 2008 is 16. 9 million tonnes and employment at the mine, mill and pellet plant will be approximately 1,550 people.
In March, 2008 IOC announced the approval of a $500 million expansion program and again in September announced a further $300 million expenditure.
Phase one of the program is currently underway and will address operating bottlenecks and improve winter performance. The investment includes the purchase of new mining equipment, the installation of a new crusher station in the mine, grinding mill in the concentrator and a 6-kilometer overland conveyor. New locomotives and rail cars will be purchased to increase railway capacity. This will expand IOC’s mining and processing capacity in Labrador West from the current 17 million tonnes to 22 million tonnes. Phase two of the program will bring total production to 22.8 million tonnes. Long term plans, including phase 3 of the expansion program may see production increase to about 26 million tonnes.
During the construction phase of the expansion program, IOC estimates that the required construction workforce will peak at 250 workers over the next three years. Once completed, the expansion will create an additional 200 jobs that will be required in day-to-day operations.
Dolomite:
The Iron Ore Company of Canada (IOC) has been mining its own dolomite for making fluxed pellets in Labrador West since 1986. Production for 2008 is forecast to be 155,000 tonnes.
The company plans to commence mining the Plateau dolomite quarry near the Javelin road, which is estimated to produce 155,000 tonnes per year over the 20 year mine life. IOC has cleared the overburden and pressure washed the surface to eliminate contaminants. Quarrying and haulage of the material will begin in the fall of 2008. |
| Labrador Inuit Development Corporation | | URL: http://inuit.pail.ca/lidc.htm | | Profile | TUC, a subsidiary of the Labrador Inuit Development Corporation (LIDC), has been quarrying anorthosite (Labradorite) at Ten Mile Bay near Nain since 1992. The squared blocks are shipped to markets in Europe and receive premium prices. Shipments in 2008 are forecast to be approximately 700 cubic meters. The quarry is expected to employ two year-round workers and 20 seasonal persons in 2008.
LIDC operates a stone-processing plant in Hopedale which utilizes undersized quarried material to manufacture monuments and furniture. Commercial production began in the fall of 2002. |
| Labrador Iron Mines Holdings Limited | | URL: http://www.labradorironmines.ca | | Profile | Labrador Iron Mines Holdings Ltd. (LIM) is advancing a direct shipping iron ore project similar in scope and location to the DSO project of New Millennium Capital Corporation. LIM’s deposits, however, are located wholly on the Labrador side of the border. LIM’s environmental registration documents indicate that processing and loading facilities will be located in Labrador with a crushing, washing, and screening operation located at Silver Yards, a former IOC installation. The ore would be shipped by rail to ship loading terminals on the St. Lawrence sea way. Europe is seen as the major market for these direct shipping ores.
LIM expects to start its project in 2009 with about 150 people employed during construction and 75 employees during operation. The LIM registration document outlines an initial phase that could last about four years with mining being done by a Labrador-based mining contractor. LIM’s project could be extended with other deposits being mined in subsequent phases. A MOU was signed with the Innu Nation of Labrador during the spring of 2008 and in July, 2008 an Impact Benefit Agreement (IBA) was signed between LIM and the Innu Nation. Negotiations are also continuing with other First Nations in the Schefferville and Sept Iles areas.
LIM states that historical reserves on their Labrador West claims total about 92 million tonnes. The historical ore reserve statements rely largely on information compiled by IOC and are not compliant with National Instrument 43-101 disclosure standards. The company is carrying out a 2008 field season that includes definition drilling and bulk sampling in order to produce an updated compliant resource estimate, which will be incorporated in a new National Instrument 43-101 technical report expected to be completed by year-end.
LIM plans initial production of 1–2 million tonnes and a ramp up to about 3.5 million tonnes by year four. LIM estimates capital costs at about $30 million with annual operating cost of about $30 to $60 million. LIM states that a large part of these costs would be incurred in Labrador. The Minister of the Department of Environment and Conservation has reviewed LIM’s registration document and declared that an Environmental Impact Statement will be necessary. The company anticipates the EIS will be ready for submission by the end of 2008 and ultimately released by the Government of Newfoundland and Labrador during the first quarter of 2009. |
| New Millennium Capital Corporation | | URL: http://www.nmlresources.com/ | | Profile | New Millennium Capital Corporation (NML) holds mineral claims in northwestern Labrador and Québec near the Labrador/ Québec border at Schefferville. These claims contain direct shipping iron ore resources (DSO), typically being about 50-55% iron, that were outlined by IOC prior to shut down of its operations in the area in 1982. NML has registered the project with Federal and Québec authorities as well as with the Department of Environment & Conservation in Newfoundland and Labrador. The Minister of DOE&C has reviewed the registration document and declared that NML must provide an Environment Impact Statement for the project.
The company’s 2008 field work schedule includes drilling and bulk sampling to upgrade historical IOC resources (estimated at about 100 million tonnes) to comply with National Instrument 43-101 standards.
The current registration document seeks approval for phase 1 of a two-phase project. Phase 1 is projected to last about three years and would entail production of about 5.4 million tonnes of DSO from deposits located in NL and about 2.6 million tonnes from deposits located in Québec. NML has said that processing will be limited to crushing and washing the ore to produce both a Lump Ore and a Sinter Fine Ore. All processing would take place in Labrador. Phase two of the project would seek separate approval from federal and provincial government authorities.
A Memorandum of Understanding (MOU) has been signed with one of four First Nations groups and dialogue is ongoing to reach MOU’s and/or Impact and Benefits Agreements with all affected First Nations groups including the Innu Nation of Labrador. The company hopes to conclude these negotiations by the end of 2008.
The project has a construction phase target date of mid-2009. A workforce of 150 people will be required during construction. The operational phase is expected to employ 150 people as well.
A recent agreement between NML and Tata Steel Global Minerals Holdings Pte Ltd. of Singapore provides NML with funds to complete a feasibility study on the DSO project. The feasibility study is expected to be completed by mid 2009. The agreement also provides Tata Steel certain exclusive rights regarding New Millennium’s large, undeveloped LabMag iron ore deposit located wholly in northwestern Labrador. |
| Newfoundland Pyrophyllite | | URL: http://www.tre.ca/Divisions/pyrophyllite/pyrophyllite.html | | Profile | The pyrophyllite mine in Manuels, Conception Bay is operated as a subsidiary company of Trinity Resources and Energy Ltd. The company has been actively involved in product research and market development. Its products are marketed under the trade name “ALTIFIL”.
With known reserves, the processing facility at Manuels can dry grind and air classify various grades of pyrophyllite powder, which is used as industrial filler in paints and ceramics.
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| Peat Resources Ltd. | | URL: http://www.peatresources.com | | Profile | Peat Resources Limited, a Toronto-based company, was formed to develop, produce, and market peat fuel for use in electrical-generating stations and other facilities. The company is active in both Ontario and Newfoundland and Labrador. The company holds exploration licences covering approximately 130,000 hectares of peat lands in several areas of Newfoundland. Initial resource evaluation of peat lands in the Stephenville-St. George’s area has defined over 42 million m3 of fuel-grade peat. Surveys conducted near Hare Bay and Gambo have identified about 32 million m3 of fuel-grade peat.
Peat Resources operates a small-scale test and demonstration facility in Stephenville to produce peat fuel pellets. The company has undertaken projects to test its peat fuel in Ontario.
In May 2008, Peat Resources Limited made an announcement concerning its Statement of Intent with Altentech Power Inc., the developer of a unique, biomass-fuelled power generation system. Altentech plans to establish several 10-mega watt peat power plants in Canada. The two companies are working together to facilitate location of the first plant in Newfoundland, and to establish a long-term supply contract. |
| Rambler Metals and Mining Canada Ltd. | | URL: http://www.ramblermines.com | | Profile | Rambler Metals and Mining Canada Limited (RAB) holds rights to a collection of mineral claims located on the Baie Verte Peninsula. These claims cover the former copper/gold producing Ming Mine as well as adjacent properties that had been brought under the control of Altius Minerals Corporation prior to the properties being assigned to RAB in a 2004 agreement.
An experienced management group oversees the project and significant project milestones have been consistently assigned and achieved:
The mine has been completely dewatered, allowing access to underground workings. All mine waste water is processed through a $2 million facility installed by the company in 2007.
A scoping study prepared by SRK Consulting suggests a 4000 tonnes per day operation could be feasible when processing begins from the lower grade/higher tonnage, Lower Footwall Zone. The company anticipates preliminary production at a lower daily rate from other lower tonnage/higher grade zones. A mine life in excess of 10 years is likely.
A National Instrument 43-101 resource estimate for the project was released in April, 2008. The estimate outlined a resource of 233,000 tonnes of copper metal and 156,000 ounces of gold contained in about 13 million tonnes of ore.
Summer, 2008 work includes A 20,000 metre drill program which is nearly completed. This drilling could likely add to known reserves as well as boost more of these reserves into higher categories of geological confidence. The company expects to have an updated NI 43-101 resource estimate available by the first quarter 2009.
RAB intends to register the project with the Department of Environment and Conservation before year end 2008. A final mine plan and business plan should also be completed soon. Depending on the outcome of the mine/business plan and the updated resource estimate RAB could be seeking project financing in the second quarter of 2009. Construction could begin shortly after adequate financing is in place with a target date for initial production in the second quarter of 2010. There are currently 42 employees working at the site. |
| Shabogamo Mining & Exploration Limited | | Profile | | Shabogamo Mining & Exploration Limited started mining its Roy’s Knob silica deposit near Labrador City in 1999. The company washes and screens the quartzite at its plant in Wabush and ships the product by rail to Sept Îles, Québec. Shabogamo has a contract to supply quartzite to Bécancour Silicon Inc. of Québec which uses the material to manufacture silicon metal. Shipments in 2008 are forecast to be 54,000 tonnes. The operation employs 18 seasonal people and two year-round employees. |
| Teck Duck Pond Operations | | URL: http://www.teckcominco.com/ | | Profile | The Teck Duck Pond Operations is located approximately 30 kilometers south of the former Buchans mine in Central Newfoundland. At start-up, the deposit had proven reserves of 4.1 million tonnes at an average grade of 3.3% copper, 5.7% zinc, 59 grams/tonne silver and 0.9 grams/tonne of gold. It is an underground copper-zinc mine and processing mill, now in its second year of operation, and has been steadily increasing production and its supporting workforce to meet its Life of Mine plans of approximately 650,000 tonnes per annum. Annual employment at the mine is anticipated to average 192 people. From the beginning the operation has taken a zero harm approach to safety and environmental management.
The operation transports uncrushed ore to the surface through a ramp in the foot wall of the deposit. It is then fed through a jaw-crusher, and sent to a 1,500 tonne coarse ore bin. It’s processed using a SAG mill, ball mill and flotation to produce separate copper and zinc concentrates. These are subsequently transported to a storage and shipping facility at the port of St. George’s on the Island’s west coast.
Teck Cominco Ltd recently launched a new name and brand that is globally recognized and respected: Teck. It’s a change that builds on its decision to group mining and refining operations into strategic business units for each major commodity: copper, metallurgical coal, zinc, gold and energy. Here in Newfoundland and Labrador, Teck Duck Pond Operations is an important part of the copper business unit.
Teck Duck Pond Operations General Manager, Bob Kelly, says that, “under one name and a new structure and approach, we are creating a strong focus on teamwork and collaboration across the entire company, and building on our ability to recognize, analyze and act on available opportunities here and around the world.” |
| Terra Nova Granite (2007) Inc. | | URL: http://www.hurleygroup.ca | | Profile | | In late 2007, the Hurley Group of Companies purchased Terra Nova Granite Inc. from Central Holdings Inc. The purchase included the production facility, equipment, and inventory. Located at Jumpers Brook near Bishop’s Falls, the new operating company, Terra Nova Granite (2007) Inc., plans to re-establish active quarrying in 2009. The company will focus on producing blank monuments, architectural products, landscape and countertop slabs for mainly export markets, and will also build on market opportunities on the Island. |
| Torngait Ujaganniavingit Corporation (TUC) | | URL: http://inuit.pail.ca/tuc.htm | | Profile | TUC, a subsidiary of the Labrador Inuit Development Corporation (LIDC), has been quarrying anorthosite (Labradorite) at Ten Mile Bay near Nain since 1992. The squared blocks are shipped to markets in Europe and receive premium prices. TUC is currently seeking markets in North America and has attended several rock show exhibits. Shipments in 2008 are forecast to be approximately 500 cubic meters.
LIDC also operates a stone processing plant in Hopedale which utilizes undersized quarried material from Ten Mile Bay to manufacture monuments and furniture. Commercial production began in the fall of 2002. Production at the plant will be increased in 2009 with the installation of a new line. |
| Vale Inco Newfoundland and Labrador Limited | | URL: http://www.vbnc.com/ | | Profile | Vale Inco Newfoundland and Labrador Limited (VINL) operates the Voisey’s Bay mine facility in Labrador. Production from the mine site during 2007 was reported by Vale to be 59,000 tonnes of nickel, 42,000 tonnes of copper and 1,239 tonnes of cobalt. Employment is anticipated to decrease from 850 person years estimated for 2007 to 750 person years for 2008. However, employment is expected to increase to 1,200 in 2009 as a result of the construction workforce required for the commercial processing facility.
VINL, as part of the Voisey’s Bay Development Agreement, is committed to constructing a commercial nickel processing plant at Long Harbour. The first option for this plant is based on Hydromet technology; however, if this proves to be technically or economically not feasible, a traditional matte plant will be constructed. The plant will have the capacity to produce 50,000 tonnes of finished nickel annually as well as associated copper and cobalt products. The company initially submitted an Environmental Impact Statement (EIS) for the facility on November 6, 2007, and was subsequently released by the Minister of Environment and Conservation on August 26, 2008. The project’s release is subject to ten terms and conditions including the completion of an Environmental Protection Plan, Women’s Employment Plan, Environmental Emergencies Contingencies Plan, Environmental Effects Monitoring Plan, hiring of Environmental Monitors, development of a Fisheries and Aquaculture Compensation Program and Liaison Committee, maintenance of financial security for site rehabilitation and implementation of EIS commitments. The company must inform the province of its decision regarding the type of facility to be constructed by November 15th of this year. The commercial plant is estimated to cost US$2.177 billion and will be operational beginning 2012.
On June 30, 2008, the Demonstration Facility at Argentia closed. This facility was operated as part of VINL’s research and development program to determine the feasibility of Hydromet Nickel Processing Technology as a method for processing Voisey’s Bay concentrate. The facility began operations in October 2005 and was scheduled to remain in operation for two years; this was subsequently extended to complete additional work to support engineering of the commercial plant. Workers were offered jobs at other Vale Inco installations and jobs at the commercial plant when it begins operations. |
| Wabush Mines | | URL: http://www.cleveland-cliffs.com/mines/Wabush_frames.html | | Profile | Wabush Mines commenced mining iron ore from the Scully Mine in Labrador in 1965 and currently operates a mine and concentrating plant at Wabush and a pellet plant and shipping facilities in Point Noire, Québec. In 2008, Wabush Mines is forecasting shipments of approximately 5 million tonnes of product and will employ a workforce of 467 people at the Scully mine.
On September 5, 2007 ArcelorMittal announced that it would exercise the option that its Dofasco subsidiary had with respect to Wabush Mines. Dofasco, which holds 28.6% of the mining venture, would acquire the interests of US Steel (44.6%) and Cleveland Cliffs (26.8%) on the same terms as those offered by Consolidated Thompson on June 6, 2007. These terms included a cash component of approximately US$67 million and certain liabilities. As a result, ArcelorMittal would own 100% of the mining company. In early March, both US Steel and Cleveland Cliffs issued press releases indicating that they had terminated negotiations with ArcelorMittal for the purchase of Wabush Mines. On March 13, 2008, ArcelorMittal announced that it had commenced legal action in the Ontario Superior Court to require US Steel and Cleveland-Cliffs to comply with the agreement for the sale of their respective interests in the Wabush Mines joint venture. |
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