Miners still keen on Sudbury basin
Market conditions ripe for exploring new ore deposits
The global appetite for copper, nickel and precious metals has companies taking a closer look at the Sudbury basin.
Ontario's ministry of mines estimates that mining companies are spending roughly $170 million on exploration in the Sudbury basin this year.
Ten years ago, almost the same amount was spent on exploration in the entire province.
Alistair Ross, a mining consultant and former Inco manager, said this is a crucial juncture for the industry in the Sudbury basin — when companies like Vale have the market conditions to explore for new ore deposits.
'They'll do well out of it' —Alistair Ross, a mining consultant commenting on Vale's investments in the Sudbury Basin.
"With the Chinese demand potentially staying up where it's at, I think those big investments are going to be made by Vale and they'll do well out of it," Ross said.
Near the "cage" (a conveyance system for workers and materials) for the Copper Cliff mine, John Treen reviews Vale's plans for extending the life of its mines in the Sudbury basin.
He's the general manager of mining and milling in Sudbury.
"Out of the last five years, every year, we found more ore through diamond drilling than we actually mined out," Treen said.
"So we have roughly over 200 million tonnes of ore and we're mining at about nine million tonnes a year. So we have, in essence, over 20 years of mining — up to 25 years of mining. Beyond that however, we have a resource base that's equal to that."
What's old is new again
Vale’s operating mines include Creighton, Garson, Coleman and Copper Cliff (north and south). Beyond expanding existing mines, the company is also constructing a new mine about 15 km west of Sudbury.
"Totten [Mine] has about a 12 to 15 year life but, like any mine, we continually find resource and reserve and that extends life more," Treen said.
The mine is expected to come online next year. And, although Vale is touting Totten as its first new mine in almost 40 years, it's not really new. It was mined by Inco in the 60s and 70s.
With good metal prices, much of what's old in the Sudbury basin has become new again.
Miners, mines and lifetimes:
Xstrata: Fraser mine and Nickel Rim South are expected to be in business for about 15 years.
Quadra-FNX: Podolsky and the Levack mines are slated to be in operation for about six years. The company is also exploring an old mine property west of Sudbury called Victoria.
First Nickel: Lockerby mine has a life expectancy of six years.