January 25, 2010 / 7:31 PM / in 8 years

UPDATE 1-Vale prepares to restart Voisey's Bay operations

* Plans to resume operations at Voisey’s Bay

* Says talks with union broke down over the weekend

TORONTO, Jan 25 (Reuters) - Vale Inco, the Canadian arm of Brazilian mining giant Vale (VALE5.SA) (VALE.N), said on Monday it plans to resume nickel mining and milling operations at Voisey’s Bay, Labrador, which have been idle since workers went on strike on Aug. 1, 2009.

The decision to resume production follows a breakdown in contract talks over the weekend between the United Steelworkers union and the company, Vale said in a statement.

Earlier this month, Vale announced that it would restart its Sudbury, Ontario, smelter for the first time since a strike at the operation began during the summer. Vale said it is using workers from outside the striking bargaining unit and some personnel from outside contractors to restart the smelter.

Vale said it plans to train on-site employees at Voisey’s Bay, who are not on strike, to restart operations. (Reporting by Euan Rocha; editing by Peter Galloway)

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