Brazilian miner Vale said in a securities filing on Tuesday it will suspend operations at its Sudbury, Canada nickel mine, after its proposal for a five-year contract was rejected by the United Steelworkers union.
United Steelworkers Local 6500, which represents 2 600 workers at the mine, said in a statement that 70% of those who voted were opposed to the Vale offer and wanted the union - whose bargaining committee had recommended the preliminary deal - to return to the bargaining table.
Sudbury produced 43 200 t of nickel last year, representing a bit less than half of Vale's overall Canadian output of the base metal.
Vale said in the filing that USW Local 6200, which represents employees at its separate Port Colborne refinery, were favorable to the proposed deal.
Vale said it continues to negotiate with the other local.