Four-year deal with Glencore negotiated under tough circumstances

The union representing workers at Glencore’s Sudbury mining operations have voted in favour of a new contract.

Members of Unifor Mine Mill Local 598 approved a four-year contract with Glencore Integrated Nickel Operations, an agreement the union said was negotiated under tough circumstances.

Low nickel prices and the fact local Glencore officials are seeking approval for $1.4 billion investment to keep Sudbury mines operating long-term were major factors at the bargaining table, said Richard Paquin, Mine Mill's lead negotiator, on Feb. 1.

"It allows us to basically assist the employer to secure our future, because we need the two big projects approved so we can have a future in Sudbury," Paquin said. "The employer is looking for $1.4 billion for the two projects — Onaping Depth and Nickel Rim Deep."

Without those projects, Glencore would exhaust its current ore supply by 2023, he said.

While not discussed at bargaining, it played a role in the four-year contract, which reportedly includes a two per cent wage increase over the life of the deal.

"It wasn't directly, but we knew that somehow they need to be able to secure that funding for us to have a future past 2023," Paquin said. "And the price of nickel didn't help, either."

After soaring six years ago well above $10 a pound, nickel has been hovering around $4.30 in recent years.

The contract was approved by 78 per cent of the roughly 800 members eligible to vote, which includes miners and mechanics. Officer workers are represented by a separate union.

"Overall, it was pretty good,” Paquin said of the response from members to the agreement. “You always have a few individuals that believe you can always get more. But you have to look at balance to achieve what we wanted to achieve at the (bargaining) table."

The agreement was reached 4:30 p.m. Jan. 30 The sides had been bargaining since Dec. 14.

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Will they manage to extend their stay in the Sudbury Basin and at the same time.... Conveniently enough....Manage to help Noront maintain it's own timelines....Which at a quick glance may coincide with Glencore's own nickel operations.....Looks to me like a lot of nickel is going to get smelt in Sudbury after 2022.....And Glencore's operations are boasting to be in the same low cost quartile as Noront's Eagles Nest was bragging about with much higher grades then their past Sudbury operations....Wonder what their costs will be in comparison....Not to mention Glencore is also looking at further reductions to the carbon footprint it is creating at their anticipated ultra deep mine by going EV...Something Noront is looking to factor into it's Eagles Nest....Again....More for the two of them to talk about.....hmmmmmm.

https://www.northernontariobusiness.com/industry-news/mining/going-deep-in-sudbury-590909

Quote: "Additional diamond drilling will take place in 2019 or 2020 to firm up the resource to make the project more economical, Wisniewski said.

The first development ore is expected in late 2022 or early 2023, and by year eight, the mine will be up to 60 per cent production capacity, he noted.

Though the project has a long lead time, Wisniewski believes it will be worth it, as the mine will be able to withstand the cyclical nature of the industry.

“This orebody, if it goes according to this plan, it will be in the bottom quartile of cash costs in the world of nickel mines,” he said. “It’s a good play; it’s robust.”

For hauling ore to the surface, the company has chosen battery-electric trucks, which Wisniewski said brings a host of advantages.

TM