Vale aims to stay competitive despite loss in profits
Totten Mine in Sudbury still on track to open and create 200 jobs
Mining giant Vale is reporting its worst profit decline in a decade.
In its second quarter report, the company said its profit was $2.78 billion less than in the same quarter last year — and that foreign currency fluctuations are to blame.
In Sudbury, Vale spokesperson Angie Robson said local operations need to continue to focus on reducing costs while minimizing the impact on staff.
She noted the company is working to continue being competitive.
"One of the things that we have happening, as an example, is we're opening Totten Mine by the end of the year," Robson said.
"It's our first new mine in Sudbury for more than 40 years … we have to continue to look to the future and look for new sources of ore so that we continue to create jobs and so forth."
She noted the new mine will create about 200 jobs.
Despite the profit decline, Vale registered the best production improvement in its nickel and copper mines, and remains optimistic about its base metals business operations around the world, including Sudbury.
"We intend that New Caledonia will be cash flow positive in the next year," said Luciano Siani, Vale's chief financial officer.
"So the prospects for the base metals business are of significant improvements over the next quarters. And we have no intention to do any divestment of this business."