CMP/Vermillion
Vale is forging ahead with several capital projects such as the upgrade to Clarabelle Mill.
So I suspect they forsee a future for Sudbury.
However it will require many efficiencies such as the proposed changes to the CBA with USWA.
They have crafted a very smart proposal.
What is required at Inco is a change in the culture. To accomplish that you need to get rid of the old guard.
On staff most of the old management people are gone...fired or pensioned.
The proposals in the union contract include a buy out for people who elect to take their pensions of $20,000 and a reduced elegibility of 27 years of service.
This will likely entice some of the old timers to accept the contract and take their pension.
As for the union officials such as Fera and Fraser, they will lose this battle. So this will likely be the end of their days as head of the union.
The demographics at Inco have already changed and 30% of the workers have less than 5 years service. By the time this is settled the demographics will again be completely different.
The company has spent millions upgrading their smelter and now will do the same at the Clarabelle Mill. In the future ore will be trammed underground directly from Kelly Lake, North Mine and South Mine to Clarabelle for hoisting and milling.
Also the tipple is being replaced at Clarabelle so more ore cars from remote mines can be dumped at the same time without being uncoupled. I suspect they will also add a second SAG Mill.
So CVRD obviously sees a future for Sudbury once the costs can be contained.
It is not out of the question that CVRD could buy E1 and ship its concentrate to Sudbury.
At Voisey's Bay they built a harbour, put in electricity and are now building a Smelter near St John's.
They are currently shipping the ore to Sudbury.
The only reason for the new Smelter is to satisfy the Gov't of Newfoundland.
In Ontario they already have a Smelter and a Mill. All they need is a concentrator at RoF...and a Railroad or a Road.
I'm not sure I agree that Sudbury is dead just yet.
SN
