Natural Resources
August 10, 2015

Natural Resource Development Supports Long-term Prosperity

Vale Meets 2013 Terms of the Voisey’s Bay Development Agreement

The Honourable Derrick Dalley, Minister of Natural Resources, confirms that Vale has met the terms of the amended Voisey’s Bay Development Agreement by formally sanctioning construction of an underground mine at Voisey’s Bay. Vale’s commitment to build an underground mine was negotiated by the Provincial Government as part of an amendment made to the agreement announced in March 2013.

“The sanctioning of construction for the underground mine is good news for Labrador and the entire province. It will extend the operating life of Voisey’s Bay by at least 15 years, providing hundreds of jobs and continuity of operations at Voisey’s Bay and the Long Harbour nickel processing plant. We are pleased with Vale’s continued commitment and investment to support future operations.”
- The Honourable Derrick Dalley, Minister of Natural Resources

The underground mine will include the Reid Brook and Eastern Deeps nickel deposits in northern Labrador, adjacent to the current open pit mine. Its development will provide hundreds of construction jobs. Once in operation, employment is estimated to be 850 workers, an increase from the current mine employment of about 450. It will have a capacity of approximately 40,000 tonnes of nickel per year. Ore production will start in 2020 and is expected to remain in production past 2035.

“Proceeding with the underground mine expansion at Voisey’s Bay marks an important milestone for our mining operations in Labrador. Developing the underground deposits at Voisey’s Bay is something we have been working on for some time and is the natural evolution of our mining operations in Labrador. Underground mining unlocks significant value and will result in the operating life of the Voisey’s Bay mine being extended. We are very excited about our future here and we look forward to the continued support of all of our stakeholders as we move forward.”
- Stuart Macnaughton, Vice President, Vale Newfoundland & Labrador

Vale will be assembling a project team and establishing a project office in St. John’s. Procurement planning will also start right away and will also be managed from St. John’s. Initial construction will begin in 2016.

QUICK FACTS:

• The Honourable Derrick Dalley, Minister of Natural Resources, confirms that Vale has met the 2013 terms of the Voisey’s Bay Development Agreement by formally sanctioning construction of an underground mine at Voisey’s Bay.
• The commitment to build an underground mine by Vale was an amendment made to the Voisey’s Bay Development Agreement announced in March 2013.
• The underground mine will include the Reid Brook and Eastern Deeps nickel deposits in northern Labrador, adjacent to the current open pit mine.
• The mine’s development will provide hundreds of construction jobs. Once in operation, employment is estimated to be 850 workers, an increase from the current mine employment of about 450.
• Ore production will start in 2020 and is expected to remain in production past 2035. The mine will have a capacity of approximately 40,000 tonnes of nickel per year.

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Media contacts:

Diana Quinton Director of Communications Department of Natural Resources 709-729-5282 dianaquinton@gov.nl.ca

Cory McPhee Vice President, Corporate Affairs Vale Base Metals 416-361-7669 cory.mcphee@vale.com

2015 08 10                              10:30 a.m.