This article was orginally published in Northern Ontario Business on March 18, 2010. Established in 1980, Northern Ontario Business provides Canadians and international investers with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.
Differing opinions on Sudbury’s costs
When Brazil’s Vale SA snapped up Inco for $19 billion in 2006, there was plenty of buzz as to what the mining giant would do with the 107-year old Canadian miner.
Traumatic restructuring fears were quickly put to rest by Murilo Ferreira, the Brazilian in charge of the nickel division who spoke at a Sudbury luncheon. He said there would be very little change with this “successful company.”
Less than a year later, Ferreira stepped down and was replaced by Tito Martins, a former Vale communications executive who together with CEO Roger Agnelli began a series of strategies to make Sudbury more globally competitive.
Agnelli stated that based on current price levels the Sudbury operations was one of the “highest cost operations” Vale Inco owns.
Change was needed to make Sudbury more sustainable.
Productivity and bonuses were red-flagged five years ago when Mark Cutifani was the helmsman at Inco Ltd. Under his direction the intent was to increase productivity by 30 per cent and take another look at the nickel bonus when negotiations came around.
“We knew we all had to work together,” Cutifani said in a phone interview with Northern Ontario Business this past month.