Vale’s Stobie Mine in Sudbury will be placed on care and maintenance later this year.
“This is a necessary decision but a sad one,” said Stuart Harshaw, vice-president, Ontario Operations. “Stobie has a rich history and has been integral to our success for more than a century. However, after more than 100 years of operation, the mine is approaching the end of its natural life. The low grades at Stobie are no longer economical to mine in today’s challenging price environment.”
Stobie began as an open pit operation in 1890. Underground operations started in 1914. The Frood-Stoie Complex has produced more than 375,000,000 tonnes of ore – more ore than any other mine in the Sudbury Basin. The suspension of operations will result in a reduction of approximately 4-6 kilotonnes of nickel and 5-8 kilotonnes of copper production annually.
Factors contributing to the impending closure include low metal prices and ongoing market challenges, declining ore grades, and, more recently, seismicity issues that restricted production below the 3,000-foot level, according to the company.
While efforts will be made to minimize the impact on its 230 employees, workforce reductions are expected.
A specific date for the transition to care and maintenance has not yet been established. “Vale is committed to our future in Sudbury,” said Harshaw. “Over the past decade, we have invested $4.7 billion to modernize and upgrade our operations.
In this prolonged period of uncertainty in the base metals market, we will continue to monitor economic conditions very closely and make disciplined operational decisions in the best long-term interests of our company, our employees and the community.”
