In 1996, Vale acquired the rights to the Vale Newfoundland and Labrador nickel-copper-cobalt deposits located on the eastern edge of a vast expanse of northern wilderness 300 kilometres north of Happy Valley-Goose Bay in Labrador, Canada.
In June 2002, Vale, through its wholly owned subsidiary Vale Newfoundland and Labrador, and the Province of Newfoundland and Labrador jointly announced an agreement in principle on a $1.9-billion (Cdn. $2.9 billion) plan to develop the Vale Newfoundland and Labrador deposit. The negotiated agreements entered into in early October 2002 (and amended in January 2009) consist of a Development Agreement and an Industrial and Employment Benefits Agreement.
Three years later, in the fall of 2005, operations in Labrador came onstream some eight months ahead of schedule. Currently, concentrate from Vale Newfoundland and Labrador is shipped to Vale's Ontario Operations in Sudbury and Manitoba Operations in Thompson, Manitoba, for processing.
A processing plant is under construction in Long Harbour, Newfoundland and is scheduled to commence operation in Newfoundland in 2013. At that time the nickel concentrates which are currently processed at Vale’s Ontario and Manitoba operations will be processed in Long Harbour.
Building Strong Relationships
The Vale Newfoundland and Labrador project is very much about relationships, including partnerships with the federal and provincial governments, and uniquely with aboriginal communities.
In hiring for our Labrador operations, we are committed to giving first consideration to aboriginals, Labradorians and Newfoundlanders. And we intend to ensure that benefits resulting from all aspects of the project are maximized for the province and its people.
Impacts and Benefits Agreements (IBAs) signed by Vale and the Innu Nation and Nunatsiavut Government (formerly Labrador Inuit Association) cover a wide range of topics including industrial and employment opportunities, environmental protection, education and training, and protection of aboriginal social and cultural values.
Investing in the Community
The Vale Newfoundland and Labrador project supports communities in Newfoundland and Labrador through sponsorship and donations to local organizations. Highlights include the following contributions:
The company has committed $13 million (Cdn $20 million) to Memorial University for the development and operation of the Vale Inco Innovation Centre at its St. John's campus. The Centre will enable Memorial's scientists, engineers and senior students to develop leading edge technologies to support advanced exploration techniques and provide support to chemical process engineering at Vale Newfoundland and Labrador.
We contributed $10 million (Cdn. $15 million) to help build the Labrador Health Centre in Happy Valley-Goose Bay, Labrador. The new facility, which opened in 2000, boasts 30 beds and provides 24-hour care in acute, primary and secondary health services to some 14,000 residents of central and northern Labrador communities.
Protecting the environment has been a priority since the earliest planning stages of the Voisey’s Bay project. The mine and concentrator in Labrador and the processing plant at Long Harbour underwent comprehensive environmental assessments. The mine and concentrator operates with environmental preservation as a front-of-mind value. Areas of focus include air water and land, including wildlife and fish. A lot of sampling is done to measure for impacts and management programs are in place to ensure that potential impacts are minimized.
© Vale 2010
Last Updated: Friday, March 30, 2012