NEW YORK Brazilian miner Vale SA expects to produce 260,000 tonnes of nickel in 2013 as it plans to spend $3.78 billion on its base metals operations during the year.
Of the $2.05 billion the company has earmarked for project execution in the base metals division, $1.22 billion will go toward the construction of its 50,000-tonne-per-year Long Harbour nickel processing plant in Newfoundland and Labrador, while the company will invest $171 million on the restart of its 8,200-tonne-per-year Totten nickel mine in Sudbury, Ontario.
The total projected cost for the Long Harbour facility has increased to $4.25 billion from a previous estimate of $3.6 billion due to "cost pressures stemming from a tight market for labor and engineering services in Newfoundland and Labrador," according to the company.
The $1.4 billion that will be spent on sustaining existing base metal operations will include $188 million for the replacement of the No. 1 furnace at the companys Onça Puma nickel operation in Brazil, which suffered a furnace breakdown in the second quarter, and $213 million for the construction of a clean atmospheric emissions reduction project in Sudbury.
Vale said it will spend $494 million for "operational enhancements" in its base metal operations, although it did not provide further details.