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8 February 2010


Vale sending nickel off to Welsh refinery

Source: The Sudbury Star

The first shipment of nickel concentrate to be processed into matte at Copper Cliff Smelter Complex since a strike by Steelworkers began seven months ago is on its way to Vale Inco's refinery in Clydach, Wales.

Six or seven truckloads of matte left Sudbury on Thursday afternoon to be processed into high-quality nickel at the Welsh refinery, said Vale Inco spokesman Steve Ball.

"This is a milestone for us," Ball said Friday.

Because of that, Vale Inco has sent a memorandum to staff acknowledging their efforts in turning out the product.

Vale Inco announced early in the strike it intended to resume partial production at some Ontario operations.

More than 3,000 members of USW Local 6500 in Sudbury and 130 with Port Colborne's Local 6200 have been on strike since July.

Another 200 or so Steelworkers at Vale Inco Newfoundland and Labrador have been on strike since Aug. 1 in a separate labour dispute.

After months of preparation, the Sudbury smelter began operating last week due to the efforts of management, nonunion staff, unionized office and technical workers and outside contractors.

This is the first time in the more than 100-year history of the nickel company that production has resumed during a strike or lockout.

"For us, it's a clear demonstration that we're committed to generating revenue," said Ball.

Normally, the matte processed from nickel concentrate would be refined at Vale Inco's Sudbury nickel refinery just down the road from the smelter, but that is not one of the plants the company has restarted during the strike.

Early on, Vale Inco began mining a vein of copper ore at Coleman Mine in Levack and at Garson Mine. That ore is being crushed and processed at Clarabelle Mill.

This week, Vale Inco announced its intention to ramp up to full production at Coleman by mining a nickel-rich vein there and to restart Creighton Mine.

At least 200 outside replacement workers will be hired to do that work.

Only one of two furnaces is operating at the smelter complex, so production will be half the usual volume or less, Ball said.

The shipment of matte to Clydach is not a milestone USW Local 6500 president John Fera is celebrating.

He questioned the cost of shipping the heavy metal product to Wales, saying it belies Vale Inco's stated intention to remain profitable in all cycles.

Vale Inco has been "saying all along that they have to be profitable in all quarters," said Fera. "Maybe we should ask Vale Inco the cost per pound to get that (matte) shipped over to Clydach, Wales.

"Their story about their finances and being profitable seems to be a lot of bull," he said.

There has been speculation in the community about whether the smoke trickling out of Vale Inco's trademark Superstack the last couple of weeks was a result of the smelting process.

Ball said the shipment Thursday is an indication that inside workers were not simply "burning pallets" as some critics have suggested.