Vale Base Metals Boosts Nickel: Completes Underground Mining of Voisey’s Bay Project in Canada
Vale Base Metals, one of the world’s largest producers of high-grade nickel has wrapped up the US$2.94 billion Voisey’s Bay Mine Expansion Project in northern Labrador. This milestone transforms the mine from open-pit to underground operations, significantly boosting nickel production to 45,000 tons per year (45 ktpy).
Vale’s Underground Mines Drive Mineral Expansion
Vale announced on December 3 that the expansion includes two new underground mines—Reid Brook and Eastern Deeps. These mines will provide nickel concentrate for Vale’s Long Harbour Processing Plant in Newfoundland. Notably, it is one of the lowest-emission nickel processing facilities in the world as its production aligns with sustainable practices.
The company’s net-zero goals include:
- Reduce emissions (scope 1 and 2) by 33% by 2030 and carbon neutral by 2050;
- Reduce net emissions (scope 3) by 15% by 2035.
Apart from nickel, the expansion will deliver 20 ktpy of copper and 2.6 ktpy of cobalt which are essential for industries like defense, battery electric vehicles (BEVs), and clean energy infrastructure. Voisey’s Bay, a significant supplier to the United States, strengthens its role in the critical minerals supply chain. Full production ramp-up is expected by the second half of 2026.
Shaun Usmar, CEO of Vale Base Metals, the critical minerals subsidiary of Vale SA said,
“The successful completion of the Voisey’s Bay expansion demonstrates our commitment to unlocking the value of our endowment and delivering responsibly produced nickel to global markets.”
Boosting Jobs and Economic Growth
Along with critical mineral expansion and supporting the economy the project has created immense job opportunities. It has given direct employment to 1,100 workers at Voisey’s Bay. This figure has jumped from 600 before the expansion. Furthermore, at the peak of the construction phase, it engaged 3,400 direct and indirect employees.
The transition supports Vale’s goal of creating shared value for Newfoundland and Labrador through job creation, procurement, and partnerships.
CEO Usmar added,
“Ensuring local economic benefits from Voisey’s Bay remains a key priority for the company, and we are proud of the collaborative relationship we have with Indigenous Partners, Innu Nation & Nunatsiavut Government, on whose traditional lands the Voisey’s Bay complex is located.”
Vale has emphasized its commitment to fostering local economic benefits. Collaborating with Indigenous partners, including the Innu Nation and the Nunatsiavut Government, the company ensures that the project respects and benefits traditional landowners.
Lastly, Usmar also assured that,
“ Voisey’s Bay entered production in 2005 and, with the completion of the expansion project, will continue to be an important engine of economic growth in Newfoundland & Labrador and provide low-carbon, high-purity nickel for many years to come.”
Vale Bolsters Global Nickel Supply
This expansion enhances Vale’s Canadian operations by reducing unit costs in its nickel segment and securing a stable supply of critical minerals. These resources are sourced responsibly from a trusted jurisdiction. They are then shipped globally for further application in defense systems, clean energy projects, and electric vehicles.
Nickel’s Long-Term Demand Stays Strong
Nickel is valuable for global energy transition, economic security, and industrial independence. This shiny metal is used in manufacturing stainless steel, batteries, and alloys for equipment, transport, buildings, and power generation.
CarbonCredits reported earlier that demand for battery-grade nickel is projected to grow significantly by the end of the decade due to rising electric vehicle (EV) adoption. However, the nickel market faced more volatility and uncertainty in November 2024, according to S&P Commodity Insights data. It is largely attributed to macroeconomic and political developments following Donald Trump’s U.S. presidential election victory.
Despite current challenges, the long-term outlook for battery nickel remains strong. Although weak demand and expanded supply have pulled nickel prices to their lowest levels since 2020, demand for battery-grade nickel is projected to grow 27% year-on-year in 2024.
Amid all these challenging market conditions, an emerging player is targeting U.S. nickel independence. Alaska Energy Metals Corporation (AEMC) is leading efforts to support the U.S. energy transition through its flagship Nikolai project in Alaska. The site holds a significant resource of nickel, copper, cobalt, and platinum group metals. And the Canadian Nickel Junior is sourcing them sustainably.
Thus, companies like Vale and AEMC will play a significant role in reducing U.S. reliance on imports with robust exploration plans for nickel and other critical minerals.
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