Name of the Project
Voisey’s Bay underground mine expansion (VBME) project.

Location
The project is located in Labrador, Canada.

Client
Vale.

Project Description
The project will extend the operational life of Voisey’s Bay, currently an openpit mine, from 2023 to 2034.

The mine has total estimated mineral reserves of 32.4-million tonnes, with a nickel grade of 2.13% and a cobalt grade of 0.13%. The openpit reserves and resources comprise the Main Ovoid, the Mini Ovoid and the SE Extension. The underground reserves and resources comprise Reid Brook and Eastern Deeps. Of the total estimated mineral reserves, the underground reserves contain 23.6-million tonnes, with a nickel grade of 2.17% and cobalt grade of 0.14%.

A feasibility study was completed in early 2015 to expand Voisey’s Bay operations underground to mine the Reid Brook and Eastern Deeps deposits through two decline and ramp systems.

The scope of the project includes:

• underground development to access the two deposits; 

• fresh and return air fans;

• increased power generation and fuel storage; 

• expansion of accommodation, offices, warehousing and maintenance facilities; 

• upgrades to water and sewage treatment facilities; and 

• paste backfill and shotcrete plants. 

As a brownfield project, the mine expansion will use the existing concentrator, port and support facilities, as well as the Long Harbour processing plant, leading to reduced implementation risks. During 2021 and 2022, the Ovoid openpit is expected to produce an average of about 800 000 t/y of refined cobalt, at an average grade of 0.08% cobalt. During the initial four-year ramp-up period, starting in 2021, VBME is expected to produce an average of about 1 800 t/y of refined cobalt at average grades of 0.15% cobalt. When operating at full scale, from 2025 to 2033, the underground mine is expected to produce an average of 2 600 t/y of refined cobalt, at an average grade of 0.13% cobalt.

Potential Job Creation
The expansion project will create 16 000 person years of employment during the five-year construction period, peaking at 4 800 in 2020. Once operational, 1 700 in jobs will be created at the underground mine and the Long Harbour processing plant.

Net Present Value/Internal Rate of Return
Not stated.

Value
The total capital expenditures are estimated at about $1.7-billion: $100-million to $150-million in 2018, $300-million to $350-million in 2019, $450-million to $500-million in 2020 and 2021, $150-million to $200-million in 2022, and less than $50-million in 2023.

Duration
The first full year of underground production is expected to be 2021, when current openpit mining begins to ramp down. 

Latest Developments
In June this year, Vale announced that it would restart substantive work on the project, allowing for a significant increase in Vale’s exposure to the electric vehicle market. 

Key Contracts and Suppliers
None stated.

On Budget and on Time?
The project was approved in July 2015; however, owing to difficult market conditions in recent years, the project was put on hold.

Contact Details for Project Information
Vale, Andre Figueiredo, tel +55 21 3485 3900 or email andre.figueiredo@vale.com.