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Iron ore production this year is expected to be about 17.5 million tonnes, representing a decline of about 18% from 2000. The decline is due to weak market conditions mainly in the second half of 2001. Shipment value is expected to decrease to $764 million, a decline of about 13% from 2000.
Markets are expected to remain weak throughout the first half of 2002. The two iron ore producers, Rio Tinto (IOCC) and Wabush Mines, have responded by postponing expansion plans and announcing production downtime. Rio Tinto has delayed the planned 2002 completion of its refurbished pellet plant at Sept Iles, Quebec (which processes ore mined at Labrador City) until market conditions improve. Wabush Mines closed on a temporary basis on October 1 and is scheduled to reopen on November 19. Wabush Mines has also announced long term layoff plans to take effect by year end (29 permanent positions).
Several companies are test milling ore or preparing for construction, including Richmont Mines (Hammerdown, gold), Buchans Barite (barite), and Thundermin Resources/Queenston Mining (Duck Pond, copper and zinc). Additionally, the dimension stone processing facility at Argentia has started production, and a second facility at Hopedale is expected to begin production in early 2002.
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Photo courtesy of: Department of Mines and Energy
Anorthosite quarrying at Ten Mile Bay, near Nain, by Torngait Ujaganniavingt Corp.
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Voisey's Bay Fact Sheet
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1994
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Initial site discovery
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1995-96
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Inco purchases property
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1996
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Inco states intention to build smelter at Argentia
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1998
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Mine/mill environmental assessment review completed
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1999
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Inco proposes to build hydrometallurgical processing facility at Argentia
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2000
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Talks
with Province suspended
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2001
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Talks with Province re-opened
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Total proven, indicated and inferred reserves of 141 million tonnes
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Total capital investment of $3 billion over 30 years
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Construction investment of $1.35 billion for the mines and mill in Labrador; a $200 million R&D program for a pilot hydrometallurgical processing facility; and $750 million for a commercial processing facility
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Ongoing investment during the production phase will total about $700 million
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Construction employment could average 700 annually; during the operations stage, total employment could range between 800 and 1,200
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Negotiations between the Province and Inco on the development of the Voisey’s Bay nickel, copper and cobalt deposit are continuing. The Project, as currently envisaged, would include an open pit and underground mine, and a processing facility within the Province. Inco intends to build a pilot hydrometallurgical processing facility that, if proven successful, will be followed by a commercial facility.
Related talks with aboriginal groups are also continuing. Inco is negotiating Impact and Benefits Agreements with the Labrador Inuit Association and Innu Nation. The provincial and federal governments are also negotiating an Environmental Management Agreement and provisions that pertain to Voisey’s Bay in the respective land claims agreements for both aboriginal groups.
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