April 29, 2009

Clement eyes legal action over Vale shutdown in Ontario

OTTAWA

Federal Industry Minister Tony Clement say he is considering legal action after Vale Inco said it is shutting down its operations in Ontario for eight weeks.

Clement said in a statement Vale made legally binding commitments under the Investment Canada Act when it took over Inco in 2006.

Clement said the department would be exploring all available options, including legal options, to address the situation.

The company said it is shutting down its nickel mining and processing operations in Sudbury starting June 1 due to weak demand for the metal used to make stainless steel. The Brazilian-owned miner formerly called Inco Ltd. said it will also shut down its precious metal processing plant in Port Colborne, in southern Ontario, for the same period.

Vale Inco spokesman Cory McPhee said there were no plans to extend the shutdown beyond the eight weeks.

Vale Inco employs about 5,000 workers in Ontario mostly at the two operations. It also has a major presence in northern Manitoba and in Labrador, where it operates the Voisey’s Bay mine.

Like all miners, Vale Inco has been squeezed by reduced demand for base metals such as copper, nickel, zinc and iron because the global recession has cut the need for steel, pipe, construction products and other materials.

The shutdown of the former Inco operations in Sudbury will follow a planned maintenance period in May.

Canadian Press

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