At long last Newfoundland/Labrador gets Vale Inco hydromet nickel plant

After nearly a decade of negotiations, combined with successful pilot plant testing, Vale Inco announced it would build a long sought-after hydromet plant to process nickel concentrate in southern Newfoundland.

Author: Dorothy Kosich
Posted: Monday , 17 Nov 2008

RENO, NV -

The Government of Newfound and Labrador has praised a decision by Vale Inco to construct a commercial hydromet plant instead of a matte refinery to process nickel concentrate from Voisey's Bay.

Hydromet offers lower sulfide dioxide emissions and uses less energy than conventional smelting and refining. Vale Inco's Long Harbour Wharf plant would produce 50,000 tonnes per year of finished nickel.

In a news release provincial Minister of Natural Resources Kathy Dunderdale said, ‘Hydromet has always been government's preferred option as it is the processing technology of the future with the greatest economic and employment impact for the province, so we fell this is the best possible outcome for the people of the entire Placentia Bay region, and indeed the province."

"Testing at the hydromet demonstration plant at Argentia has proven this technology will work on Voisey's Bay and it meets our goal of ensuring that ore extracted in this province is processed to a finished nickel project in this province," she said. "This decision provides a major boost for the people and businesses in this area that will be felt for a very long time."

A traditional matte plant would have seen Voisey's Bay nickel concentrate shipped to Ontario and Manitoba for smelting. In order to generate more taxation revenue and high employment, the government of Newfoundland and Labrador prefers that the concentrate be processed within the province.

The total GDP value of the hydromet plant including Voisey's Bay mine and mills is Cdn$20.7 billion. Vale Inco has projected a US$2.17 billion capex for the plant, which must be completed by December 31, 2011. The plant will generate 450 permanent jobs.

The insistence by provincial officials that every bit of ore at the mine be milled and refined in the province has been a political issue since 1999.