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Vale marks Voisey's Bay expansion milestone

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(Kitco News) - On Friday Vale announced first ore production milestone at its Voisey's Bay Mine Expansion Project in Northern Labrador.

The company is transitioning to underground operations.

"Voisey's Bay is home to one of the largest nickel deposits in the world. Located on the north coast of Labrador, about 35 km south of Nain, Voisey's Bay has been producing nickel from an open-pit operation since 2005.

"The transition from open-pit to underground involves the development of two underground mines – Reid Brook and Eastern Deeps - extending the life of Vale's Labrador Operations well into the future.  The underground mines will produce 40,000 tons of nickel in concentrate at a peak annual production rate of 2.6 million tonnes," said the company in a news release.

The company said it has partnered with Indigenous partners, Innu Nation & Nunatsiavut Government, on whose traditional lands the Voisey's Bay Complex is located. The mine employs about 500 Innu and Nunatsiavut Inuit.

Spot nickel is trading at $8.33 as of 12:30 p.m. ET today. The metal is up over 40% in the past year.

In 2018 Vale and Wheaton inked a cobalt stream to partly finance the expansion.

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