Vale asks to delay schedule for Voisey's Bay underground mine

Natural Resources Minister Siobhan Coady says Vale's plan to expand its mining operations in northern Labrador may be set backa few months.

"Vale has come to the government and said they want to finish some detailed engineering before they go to procurement," Coady told reporters atthe House of Assembly on Thursday.

"They just feel they'll get better pricing and better outcomes if they do that," she said.

In the legislature, Coady said the delay could be "a few months." Her department has asked the company for more information so it can analyze the request.

"But they are committed to going underground," she added.

First ore still 2020, Vale says

Vale spokesperson Bob Carter saidfirst ore from the underground mine is still expected in 2020, but it could be pushed to thelater part of the year.

Carter said about 100 people are working on engineering and procurement out of the St. John's office, but the company wants more detailed engineering before calling tenders on goods and services.

He said without that information, some prices might have to be adjusted or contracts re-tendered.

"It will invariably catch up to you," he said.

• Vale making strides towards underground mine in Labrador

Carter saidworkhas begun atVoisey'sBayon the infrastructure needed to the build the underground mine.

Construction hasstarted ontemporary bunkhouses which will eventually be replaced by a permanent camp. Access roads are alsobeing built to underground entrances.

But the work of digging out the underground mine will shift from 2017 into 2018, Carter said.

"We've advised the government our schedule is being adjusted."

The underground mine will replace the open-pit mine that has been operating 35kilometres south ofNainsince 2005, with most of the nickel, cobalt and copper sent to Ontario and Manitoba for processing.

Thatwill expand the life of theVoisey'sBay operation until 2032 and double Vale'sworkforce in Labrador to 850. It will also produce nickel that can be processed in Long Harbour.