Vale Base Metals, a subsidiary of Vale S.A. (NYSE: VALE), has now finished the C$4.1-billion-dollar expansion project at the Voisey’s Bay mine in northern Labrador. It has moved from an open pit operation to a large-scale underground asset.
The expansion’s completion has added about 500 permanent jobs at the site. It will churn out 45 kilo-tons of nickel concentrate, 20 kilo-tons of copper and 2.6 kilo-tons of cobalt per annum. The commodities will be extracted from two underground mines: Eastern Deeps and Reid Brook.
“I want to acknowledge and thank the many teams who helped to bring this complex project safely and successfully to completion,” chief executive, Shaun Usmar, said in a press release on Tuesday. It was one of Canada’s largest underground mine construction initiatives to date.
Vale purchased Voisey’s Bay in 1996 and open pit production commenced in 2005. It is expected to contribute over C$20 billion to Newfoundland and Labrador’s gross domestic product (GDP) during its lifespan. Resources are expected to be depleted by 2034.
It hosts one of the world’s largest, most valuable nickel deposits. In 1998, a book was published about Voisey’s Bay titled “The Big Score: Robert Friedland and the Voisey’s Bay Hustle.” It details the business dealings involved after it was discovered by prospectors in 1993 and its economic implications for Canada, among other things.
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Newfoundland & Labrador gets another valuable mine
Central Newfoundland’s Valentine Gold Mine, a prolific asset that will enter the commercial production phase next year, is expected to contribute almost C$3 billion to the province’s GDP during its 14.3-year life.
Though not quite as valuable as Voisey’s Bay, the operation run by Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) is one of the region’s most precious mining assets.
In May, the Canadian Institute of Mining, Metallurgy and Petroleum awarded Calibre with its John T. Ryan National Safety Trophy for the company’s outstanding safety record at the project in 2023. Extensive construction and development work at the site went seamlessly last year.
Valentine will churn out approximately 195,000 gold ounces annually for 12 years and provide about 500 residents will full-time employment.
In September, we led a group of analysts on a tour through the Valentine Gold Mine site to provide updates on the construction process and completion timeline, as well as production projections. Here’s a peek at what they saw. pic.twitter.com/ESRz57vHOu
— Calibre Mining Corp. (@CalibreMiningCo) November 20, 2024
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