Vale to boost Sudbury mine output despite strike

TORONTO (Reuters) - Brazilian miner Vale (VALE5.SA: Quote) will restart one nickel mine and boost production at another at its Sudbury, Ontario, operation despite a seven-month strike at the complex, a company spokesman said on Wednesday.

Vale will restart its Creighton nickel mine and run it up to full production, and will also move to full output at its Coleman mine, which has had partial production since October. The company's Garson mine has also been running at partial output since October.

Processed ore from the operations will be used to feed Vale's Copper Cliff smelter in Sudbury, which recently began operating at 50 percent capacity with nonunion workers and has been eating through stockpiled ore.

"We're just looking longer term that a source of feed will be needed," said Core McPhee, spokesman for Vale's Canadian nickel and copper operations, which the company acquired when it bought Inco in 2006.

Vale will staff the mines using workers provided from a contractor, he said.

More than 3,100 workers at Vale's operations at Sudbury and Port Colborne, Ontario, went on strike in July. On August 1. workers at Vale's Voisey's Bay mine in Labrador on Canada's East Coast also went on strike.

Vale's move to partially restart the Sudbury operations last year increased tensions between the company and the United Steelworkers Union, which represents the workers.

The union was not immediately available for comment.

NO TALKS