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Vale mine extension work will be contracted out but exploration could lead to phase two approval

The $150-million project to extend the life and increase the production of Vale’s mining operations in Thompson won’t result in a larger workforce but could lay the foundation for proceeding with the next phase, the general manager of the company’s M
Vale Manitoba Operations general manager Gary Annett spoke at a virtual meeting of the Thompson Cham
Vale Manitoba Operations general manager Gary Annett spoke at a virtual meeting of the Thompson Chamber of Commerce June 30.

The $150-million project to extend the life and increase the production of Vale’s mining operations in Thompson won’t result in a larger workforce but could lay the foundation for proceeding with the next phase, the general manager of the company’s Manitoba Operations told the Thompson Chamber of Commerce June 30.

Gary Annett, who worked in Thompson in 2018 and then returned to oversee the Manitoba division on June 1, said the overall effect of the project's first phase, which was announced June 29, would be “neutral” when it came to the number of permanent employees.

“Definitely the capital phase is work that we’ll be sending out to be done, which is the boring of the holes for the ventilation and then also the upgrades on the backfill system and the power system,” he said. “It’s kind of specialized work. It’s tendered for a short period of time. It’s big machines but sometimes it’s not a big workforce.”

By adding ventilation and power to make more drilling possible and increased backfill capacity speeding up the process of filling in mined areas and moving on to the next block, the project will increase the amount of ore that comes out of Thompson. There is also substantial exploration drilling happening, using five surface drills and three underground drills, though at times the total number may rise as high as 10, Annett said.

“We are currently driving some exploration drifts so we can do some of the drilling from underground instead of doing it on surface,” he said. “This is currently an exploration level unheard of around these parts.”

If the drilling identifies new ore sources, it will strengthen the division’s case for moving ahead with phase two of the mine extension project. 

Annett said the fact that Thompson’s nickel ore is a sulphide deposit means that it can produce high-grade nickel suitable for different uses, unlike laterite nickel, which is more plentiful.

“We can be part of that [electric vehicle] battery market if we would like to be and we can also still supply the stainless steel market as well,” he said.

Proceeding with this investment now, when nickel is on the upswing because it could help reduce greenhouse gas emission from fossil fuel use, is important because there’s no guarantee how long the favourable conditions will last.

“In the background there is always someone working on a different technology,” he said. 

The process for Manitoba Operations to get to this point was painful, Annett admitted. 

“The last few years for Thompson has not been easy and added onto that was the COVID pandemic,” he said. “This has made it even more challenging but as we’ve confronted and engaged this transformation we have been able to increase our safety, lower our cost and improve our productivity. It’s been a difficult journey and we have made some difficult decisions but in the end we have persevered and we continue to do so together because we see what’s possible for the future of the operation and this great community. Yesterday’s news is a testament to the patience, fortitude and professionalism of the entire Thompson workforce and the entire Thompson community and I’m thrilled to be a part of it and I can’t wait to get started on this great journey.”

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