Vale shutters Sudbury mine: declining ore grades, metal prices cited for Stobie Mine closure.

• Author: Kelly, Lindsay
• Position: MINING

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 that 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 timelines to 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."

The news is "devastating" for its unionized workers, but it's still too early in the process to determine what the impact of a shutdown will really mean, said Rick Bertrand, president of United Steelworkers Local 6500.

"It's a low-grade mine and with that seismic activity, I think that's probably what put it over the top, I'm thinking," he estimated. "It's a health and safety issue, and there's still some seismic activity going on now."

Bertrand said Stobie employees were delivered the news on the morning of March 10 by Vale officials before the decision was made public, a courtesy he applauded.

But the announcement didn't come entirely as a surprise for workers, who are well aware of the mine's low nickel grades and slumping nickel prices, he added.

"There's been a lot of talk about it, so I don't think it comes to a surprise, but you do get that shock when you do find out."

Bertrand said the union would aim to retain as many jobs as it could.

"We're going to work with the management and ensure they follow the collective agreement and minimize impact on our membership," he said. "So we're going to work through it and hopefully we can save all jobs if...