Nickel giant Inco (TSE) is moving ahead with plans to advance McCreedy East, its largest undeveloped nickel-copper deposit in Ontario’s Sudbury Basin, to the production stage.
The first phase of development, involving the mining of 15 million tons of ore grading 4.32% copper and 1.44% nickel, began in 1989 but was suspended in 1991 to provide for additional engineering studies and to incorporate new copper and precious metals discoveries into the development plan. These studies were completed in 1993 and Inco will now resume work on the first phase, which will cost about $194 million, of which about $78 million has been spent.
McCreedy East is expected to produce its first ore in late 1996. When full production is reached in 1999, the mine will be producing 3,000 tons of ore per day, and will continue to do so for the next 17 years. At this rate, annual production will be 22.5 million lb. of nickel and 77.5 million lb. of copper.
The deposit, situated 30 miles west of the town of Sudbury, is expected to be one of the company’s lowest-cost producers. Ore handling and materials transportation will be integrated with Inco’s existing Coleman mine. McCreedy East will employ about 200 people, and will serve to replace production from other area mines.
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