Company’s vice-president seeking $1.4 B from investors to continue deep mining operations in Sudbury
Glencore’s vice-president Peter Xavier says unless the company can raise $1.4 billion from investors, the life of its mining operations in Sudbury will end in 2021.
But in the face of “disruptive changes” from Asian exports — which Xavier estimates supply between one-third and a quarter of the world’s nickel — the company is trying to extend its presence by opening two new deep mining projects in the area.
And to mine deeper, the company needs to raise money. “The challenge for us in our future operations are at depth so you can imagine finding the time to find to develop, the challenge economically to bring those to a positive business case are getting more difficult,” Xavier said.
Xavier also said the company doesn’t turn a blind eye to how this affects is 1,800 employees in Sudbury.
“When the new ore source comes in and when the other one stops there is a gap or a dip [in employment] if you will,” Xavier said, “it’s not zero, but it is a dip. That’s something that we have to turn our heads to post-project approval and plan that out.”
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