Sudbury Vale boss talks about need for job cuts and the dismantling of the Superstack

The head of Vale's mines, mill and smelter in Sudbury says they recently had to layoff some workers in order to stay competitive.

But director of Ontario operations Gord Gilpin did not say how many non-union jobs were cut in the past few months.

And he wouldn't rule out further layoffs to the mining company's Sudbury workforce of 4,000 people.

"You know we're facing a real need to simplify our business and as a consequence of that, unfortunately we've had to make some tough, tough choices, but they are for the better of the business longer term," Gilpin told reporters, after addressing a chamber of commerce luncheon on Wednesday.

He was also asked about the sluggish price of nickel, which is currently hovering around the $7 US per pound mark.

While it has historically gone through boom-and-bust cycles, it has been in a prolonged gully for over a decade now.

"We are concerned, but at the same time, I think we're blessed with a great endowment, a pro-mining community," Gilpin said. 

"But the reality is the world changing with the amount of nickel that's coming on the market and we've got to stay competitive."

During his speech, Gilpin updated the crowd on several projects the mining company is working on around the Sudbury basin, including the new Stobie open pit mine, the planned expansion of the Copper Cliff mine and the long awaited "dismantling" of the Superstack.

The landmark 381-metre smokestack has dominated the local skyline for over 50 years, but with the steady reduction of sulphur emissions over the decades, the stack was decommissioned in 2020.

Gilpin says he understands that the Superstack is a "very meaningful, very important" symbol for Sudbury, but that it "doesn't make sense" to keep it standing in the middle of the Copper Cliff smelter complex, saying Vale spends "a lot of money maintaining that to keep it safe."

He said the work to take it down is set to get underway by the end of this summer.

Asked about the current trade war with the United States and how that could affect the electric vehicle battery market for nickel, especially considering a 2022 supply agreement Vale made with Elon Musk's Tesla, Gilpin told reporters its tough to make plans amid the current uncertainty.

"It's something we're concerned about. It's something that we're looking at, thinking about. But until we get through this period of volatility, it's kind of impossible to predict,  where that's going to go," he said.

"So what we're focusing on is trying to be, you know, safe, reliable operators and, and continuing the long term journey of being a competitive producer."