NICKEL DEVELOPMENT – Totten mine, Voisey’s Bay refinery to go forward

SUDBURY - CVRD INCO has earmarked US$66 million toward development of the Totten nickel-copper underground mine near Sudbury. Total cost of the project is US$362 million with a Q2 2011 start-up date. The mine will have an annual production rate of 8,200 tonnes of nickel, 11,200 tonnes of copper and 82,000 oz of precious metals.

A further US$110 million has been promised in 2008 toward the building of a 50,000-t/y nickel refinery at Voisey's Bay in Labrador. The refinery has a total price tag topping US$2 billion and will be ready in Q4 2011. The practice of shipping concentrates from Labrador to plants in Thompson, Man., and Sudbury, Ont., will then be discontinued.

The announcement comes as part of COMPANHIA VALE DO RIO DOCE's (CVRD) 2008 capital plan totalling US$11 billion. Next year the company expects to spend US$723 at its Goro nickel project in New Caledonia, US$581 million at the Onca Puma nickel mine and US$91 million at Vermelho nickel mine, both in Brazil.

An English part of the CVRD website is available at www.CVRD.com.br.