Cautious optimism: Voisey's Bay deal raises sustainability questions.

• Author: Louiseize, Kelly
• Position: Inco Ltd. mining project and labor contract talks - Brief Article

Sudburians are cautious and waiting to see the effect on the local economy, while Inco executives are trumpeting the success of the $2.9-billion Voisey's Bay project.

Bryan Beach, heavy-duty-equipment mechanic, works underground at Inco's North mine in Copper Cliff. While he says he does not feel threatened by the opening of Voisey's Bay now, he is concerned about the contract negotiations, which are slated for 2003. He questions whether Inco's administration will try to separate the mill and smelter workers from the mine workers so the Voisey's Bay ore can be refined regardless of how contract talks are going.

"What a lot of people are scared of is when they bring the ore in from Voisey's Bay, they may keep us out on strike longer and still be making the money," Beach says.

Inco Ltd. and the Province of Newfoundland and Labrador jointly announced on June 11 that they have entered into a statement of principles on the development of the Voisey's Bay nickel-copper-cobalt deposits in Labrador. The non-binding statement of principles with the province provides for the development of a $470-million (US) mine and mill/concentrator processing plant at Voisey's Bay, and a $120-million (US) research and development program in hydrometallurgical processing.

Dan O'Reilly, staff representative for United Steelworkers of America Local 6500, feels confident about the forthcoming negotiations.

"We don't think Inco can take a strike," O'Reilly says. "They are going to be spending a lot of money on Voisey's Bay. The price of nickel is going to be good and Inco is going to need the cash flow."

He is concerned, however, about Sudbury's long-term sustainability, and admits he is nervous, especially since the union asked Inco to put on paper their promise to begin mining new ore bodies in Sudbury, like the Kelly Lake and Totten deposits.

"We have not seen anything in writing that they are going to open those mines," O'Reilly says. "They haven't come out and said 'We are going to put x number of millions of dollars to develop these mines,' and our suspicion is any money they have for development is now going to Newfoundland."

Once Voisey's Bay is in full production and processing, O'Reilly expects the workforce in Sudbury to fall substantially.

In contrast, Doug Nadoronzny, general manager of economic development and planning in the City of Greater Sudbury, predicts Sudbury mines will...