A Voisey's Bay breakthrough? Significant mining announcement coming Monday

Nickel prices have soared in recent months, and it now appears that rebound willmean big news for Labrador's mining sector.

Government and company officials have confirmed that a "significant" mining announcement will take place in St. John's Monday, regarding the long-delayed underground mine at Voisey's Bay.

• Voisey's Bay poised to capitalize on demand for cobalt, but Vale silent

"Indeed, the government is making a significant mining announcementon Mondayand we look forward to joining them," a spokesperson for Valewrote in an email to CBC News Friday morning.

The government confirmed Friday afternoon thatPremier Dwight Ball will join leaders from the Brazilian mining giant at 10 a.m. Monday at the Sheraton Hotel.

No one will confirm details, but sources say Vale plans to announce that plans to establish an underground mine at Voisey's Bay are back on track.

The project was cast into uncertainty 10 months ago when the company announced it was reviewing its worldwide operations amid a persistent downturn in nickel prices.

• Union, government still high on underground prospects for Voisey's Bay mine

The roughly $2-billion project was sanctioned in 2015, and was scheduled to begin production in 2020.

A new timeframe for the project will likely be released on Monday, but it's sure to inject some much-needed optimism into an industry that has been buffeted by challenges in recent years.

Surface mining beganin Voisey'sBay in 2005 in order to access a world-class nickel deposit. There are also large deposits of copper and cobalt.

The company has also established a multi-billion-dollar nickel processing facility in Long Harbour, Placentia Bay. The company said last year the workforce at thatfacility was more than 900people.

But the open-pit mineis expected to be exhausted in three or four years, and the underground expansion was promoted as a way to extend the life of the mine by about 15 years.

Vale has said it will require an extra 400 people to operate the underground mine, in addition to the roughly 450 people who currently work at the site in northern Labrador.

Considerable engineering and site development work has already been completed.

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