Vale SA (NYSE: VALE, Stock Forum) has begun construction of a $2 billion emissions reduction project at its smelter in Sudbury, Ontario, a move that kickstarts one of the largest single environmental investments in the province’s history.
When completed at the end of 2015, the Clean AER [Atmospheric Emissions Reduction] project will reduce sulphur dioxide emissions by 70% from current levels, and welldust and metals emissions by 35% to 40%, the Brazilian mining giant said in a press release.
Vale has integrated operations that transform ore into refined nickel in the Sudbury region of Ontario.
Construction on the Clean AER project will involve a complete retrofit of Vale’s smelter converter isle, the construction of a new secondary baghouse and wet gas cleaning plant, a second acid plant, and new material handling facilities to better prevent dust from entering the community, all while the smelter will continue to operate.
Vale estimates that the project will require about 8 million person hours of additional labour, with 1,300 additional workers needed on site during the peak construction period.
The reduction in sulphur dioxide emissions will put Vale below government regulated emissions limits by 2015, to 45 kilotonnes versus the regulatory limit of 66 kilotonnes per year.
In 2010, Vale announced a planned 5-year investment program of $10 billion across Canada to enhance and expand its operations. Approximately $3.4 billion of this amount is being spent on modernizing Vale’s Sudbury operations, including the Clean AER Project.
Closing at $18.70 on Monday, Vale has a market cap of $100.3 billion, based on 5.3 billion shares outstanding. The 52-week range is $33.74 and $17.62.