Inco makes plans to reopen Garson mine; staff cuts in works

Pending approval from its board of directors, Inco (TSE) plans to reopen the high-grade Garson mine in Sudbury, Ont.

The giant nickel miner closed the mine in 1986 after a worker was crushed to death while installing roof supports.

“Garson is the largest high-grade source available to us for quick access,” Chairman Michael Sopko told analysts at a recent meeting. “We intend to have it on line by late next year.”

Garson grades 1.8% nickel, compared with an average of 1.3% nickel for the Ontario division.

The reopened mine will employ 100 workers from other Sudbury operations that are slated to close, compared with 200 workers in the 1980s. A company official in Sudbury said that new mining techniques have reduced manpower requirements while improving ground conditions.

“Improved mining techniques and ground support methods make us extremely confident that the mine can be reopened safely,” he said.

Meanwhile, falling nickel prices have prompted Inco to cut its 10,000-strong workforce by at least 400 employees. Company initiatives — including voluntary early retirement programs, voluntary severance initiatives, leaves of absence and educational leave — will affect both staff and hourly paid employees.

Last year, a similar program at the Sudbury operations attracted 1,265 employees.