Tag Archives | Sudbury Basin Mining Sector Booming

The Mighty Sudbury Basin – Politically Secure, Enormously Pro-Mining and Geologically Rich – is on a Mine Building Boom – by Nick Stewart (Part B)

This article was first published in Northern Ontario Business, a newspaper that has been providing northerners with relevant and insightful editorial content, business news and information for over 25 years.

FNX Mining

The first half of 2008 has been a busy one for the mid-tier miner with a new shaft in operation and a change at the top.

President John Lill resigned from the company in early August, indicating a desire to pursue other interests. Lill had taken up the mantle of president and CEO in September 2007, replacing Terry MacGibbon, who has since been appointed to his prior roles.

The company’s Podolsky mine went into production earlier this year and has shown greater results than exploration potential had indicated.

With expectations for copper grades of 3 per cent, production has shown 12 per cent in the first quarter, and more than 5 per cent in the second. It’s expected to average out between 6 and 7 per cent over the rest of the year.

“Historically, in the Sudbury basin, these types of deposits have mined about 20 to 40 per cent better than they drilled off,” says MacGibbon.

Having cost $150 million to put into production, Podolsky has been a 300-tonne per day producer since January. That number will rise to 1,000 tonnes by year’s end, representing 400,000 tonnes annually at full production.

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The Mighty Sudbury Basin – Politically Secure, Enormously Pro-Mining and Geologically Rich – is on a Mine Building Boom – by Nick Stewart (Part A)

This article was first published in Northern Ontario Business, a newspaper that has been providing northerners with relevant and insightful editorial content, business news and information for over 25 years.

While much of southern Ontario’s manufacturing economy is taking a beating, Sudbury and its mineral industry is riding high with record capital investments in mining. Here’s a round-up of what’s going on with the big and small producers.

Xstrata Nickel

The world’s fourth-largest nickel miner has a series of major local investments on the go and recently received approval from head offices in Switzerland for $455 million to move them forward.

Of that total, $280 million will be spent on developing the new Fraser Morgan mine, which goes into operation in 2010, producing 7,000 tonnes of nickel per year. Up to $70 million has been spent on the project to date.
 
The remaining $175 million will go towards the local Strathcona Mill, which currently handles 2.4 million tonnes of ore. The investment will expanded that to 3.4 million.

These are just a small part of Xstrata’s local growth plan, which includes bringing its flagship Nickel Rim South mine into production in 2009, having first hit upon its value in 2001. Once fully operational, it will annually produce between 12,000 and 15,000 tonnes of nickel, 50,000 tonnes of copper and several hundred ounces of precious metals.

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