NEW YORK Vale SA has laid
off 30 support and service workers from its Sudbury, Ontario,
operations as it looks to trim costs amid "volatile market
conditions and operating cost challenges."
The company, which made the cuts
March 19, had previously offered voluntary retirement packages
to certain employees. It had also looked for opportunities to
redeploy affected workers to other Vale operations.
The 30 positions were nonunion,
a company spokesman told AMM.
"These decisions, while
difficult, are part of a wider organizational review designed
to reduce costs, ensure continued competitiveness and
strengthen the sustainability of our operations in Sudbury,"
the company said.
In January, Vale announced plans
to idle one of the two furnaces at its Copper Cliff smelter in
Sudbury by 2016 as part of its cost-cutting review (
amm.com, Jan. 11).
"In the face of volatile market
conditions and operating cost challenges affecting the broader
mining sector, work began last year to reinvent the business
model for Vales base metals organization," the Rio de
Janeiro-based company said. "This review has clearly
demonstrated the need to reduce fixed costs. Unfortunately,
this includes a reduction in work force levels, particularly in
support and service functions in Ontario and around the
Vale recently reported a
$2.65-billion net loss for the fourth quarter of 2012, its
first quarterly loss since 2002 (
amm.com, Feb. 28).