May 17, 2020

A heavy price to pay: Glencore to close Tahmoor coal mine

Glencore
Australian coal mining
Tahmoor coal mine
Glencore
Dale Benton
1 min
A heavy price to pay: Glencore to close Tahmoor coal mine
Glencore, one of the world largest mining companies with operations in Europe, Asia, North America and Australia, has announced that it will close its u...

Glencore, one of the world largest mining companies with operations in Europe, Asia, North America and Australia, has announced that it will close its underground coal mine Tahmoor.

The news of the closure of the Australian mine comes after a period of significant downturn in coal prices, with operations stopping as early as 2016.

“The decision has been made as a result of continued low prices in global coal markets, which has meant the economic return from reserves still available at Tahmoor are not sufficient to warrant the investment required to mine them," Glencore said in a statement.

Tahmoor employs around 350 workers at the mine, all of which will lose their jobs as the company will reduce its workforce over the next 18 months.

“We appreciate this will be a difficult time for our employees and we will be putting support services in place to assist them, including investigation of opportunities for redeployment at other Glencore coal operations,” the statement added.

Metallurgical coal prices across the world have dropped from over $300 a tonne in 2011, to close to $94 per tonne this year.

The Tahmoor mine, situated in New South Wales, has been operating for over 20 years and produced over 2 million tonnes of metallurgical coal in 2015.

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Jun 29, 2021

Vale invests $150mn to extend life of Manitoba operations

Vale
Nickel
Manitoba
battery metals
2 min
Vale’s $150mn investment in operations at Thompson, Manitoba will extend mine life by 10 years

Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.

Global energy transition is boosting the market for nickel

The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.

“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.

“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”

Vale continues drilling program at Manitoba

Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.

“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.

“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”

The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history.  Mining of the Thompson orebody began in 1961.

“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.

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