Vale gives green light to Voisey’s Bay mine expansion

Brazilian mining company Vale says it will proceed with construction of an underground mine at Voisey’s Bay, N.L., extending operations by at least 15 years and creating 1,700 jobs.

Construction is to begin this summer and take about five years.

“A great day for Newfoundland and Labrador and a great day for Vale,” Newfoundland and Labrador Premier Dwight Ball said in St. John’s, N.L. Also on hand was Vale executive Eduardo Bartolomeo, Natural Resources Minister Siobhan Coady and former premiers Clyde Wells, Brian Tobin and Roger Grimes.

Once operational, Ball estimates the underground mine will create an additional 1,700 jobs in the mine and at the Long Harbour, N.L., processing plant. Ball estimated an annual payroll of $370 million per year, with $69 million per year in provincial tax revenue. The premier also emphasized the new job opportunities for tradespeople and engineers.

The first ore production is expected by 2021, which will kickstart operations at the Long Harbour plant.

The mining operation in northeastern Labrador opened in 2005 and employs about 500 people.

More than half of the workforce in the remote area accessible by plane is Inuit or Innu, while more than 80 per cent of contracts are with Indigenous-owned and operated businesses.

Bartolomeo said his company is planning to continue working with Innu and Inuit partners for the new expansions.

Johannes Lampe, president of the Nunatsiavut government, said the announcement marks “a happy day for Labrador Inuit,” with new opportunities for direct staff and contract jobs in transportation and infrastructure around the site.

Labrador Inuit are guaranteed jobs in the new operations under the impacts and benefits agreement the Nunatsiat government has signed with Vale. The Innu government also has an agreement with the company.

The premier said the success of the province’s mining industry, and Voisey ’s Bay in particular, has “earned Newfoundland and Labrador a position on the global stage.”

Vale had halted the expansion project in 2017 as it reviewed global operations when nickel prices dropped.

Bartolomeo said the company is eager to expand.