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Vale plans to close canadian Nickel mine

Vale plans to close canadian Nickel mine

Representatives of the Brazilian mining Corporation Vale announced plans to Birchtree. This small canadian mine production of Nickel is located in the province of Manitoba. The Corporation intends to suspend its work starting in October of this year. The representatives of the Corporation motivate this decision low cost of Nickel. For the last 6 years the prices have decreased by almost 70%. An additional factor was the decline in the quality of raw materials.

Despite the suspension of the mine operation in General, the volumes of extraction of Nickel at the Vale will not change. Birchtree annual production is about 6000 tons of metal, if you do the conversion on clean Nickel. The company argued that this value will be offset by a certain expansion of production. This refers to the activities of the Thompson plant, also located in Manitoba. However, you will be required to upgrade production. The cost of this process will amount to 100 million USD.

It should be noted that stop small businesses are unlikely to have a negative impact on the activities of the Corporation. Vale remains the world’s largest supplier of Nickel. The main assets of the Brazilian Corporation located in Manitoba and Ontario provinces of Canada. In March of this year the company stopped the exploitation of the mine Stobie. It is one of the oldest assets in the canadian mining sector. Getting Nickel raw materials at the mine began in 1890.

Unlike Vale Australian Corporation BHP Billiton plans to continue its asset Nickel West. Representatives of the company speak about the project of construction of two open pits. Its implementation can start when approval is received from the Agency of environmental protection in the state of Western Australia.

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