Vale breaks ground on a leading-edge project at Copper Cliff

1 of 3Groundbreaking for Vale's Clean AER Project was on June 22, 2012; (L to R) Dr. David Pearson (member of the Premier’s Advisory Panel on Climate Change); Kelly Strong (GM, Ontario Operations); John Pollesel (CEO, Vale Canada Ltd.); Rick Bartolucci (Ontario's minister of northern development and mines); Marianne Matichuk (mayor of Greater Sudbury); premier of Ontario, Dalton McGuinty; Jim Bradley (Ontario's minister of the environment); Dave Stefanuto (director, Clean AER Project). — Photo courtesy Vale

2 of 3Ontario Premier Dalton McGuinty and Northern Development and Mines Minister Rick Bartolucci speak at the groundbreaking ceremonies in front of the Clean AER Project team. — Photo courtesy Vale

3 of 3This is a rendering of the Copper Cliff smelter complex post-2015. — Photo courtesy Vale

On June 22, 2012, Vale broke ground on its Clean AER (Atmospheric Emissions Reduction) Project, the largest single environmental investment in Sudbury’s history and one of the largest environmental investments ever in Ontario. The Clean AER Project will see sulphur dioxide emissions at Vale’s Copper Cliff smelter in Sudbury reduced by 70 per cent from current levels, as well as dust and metals emissions reduced a further 35 to 40 per cent.

The project will involve a complete retrofit of the converter aisle at the Copper Cliff smelter. Sulphur dioxide that currently goes up the super stack from the converters will be captured in a brand new wet gas cleaning plant and acid plant; this will then be converted to sulphuric acid and sold.

The project will also involve construction of a new secondary baghouse and new material handling facilities to better prevent dust from entering the community. The smelter will continue to operate through the construction period.

Angie Robson is the manager of corporate affairs at Vale. She said not only will the project lead the way when it comes to environmental benefits but it will also push Greater Sudbury and northern Ontario into economic prosperity.

The project will be completed by 2015, said Robson, and the smelter will operate well below government-regulated emissions limits by that time. It will create about 45 kilotonnes of sulphur dioxide per year—below the regulatory limit of 66 kilotonnes per year.

"The environmental reductions are significant," she said, "but the economic spinoff that will be brought to Sudbury is also significant. The project is going to require eight million hours of additional labour—which means 1,300 additional workers on site during peak construction of the project. This does not include the additional employment that will be created off site with service providers."

Additionally, after the newly renovated smelter is up and running, it will cost about $11 million more per year to operate along with the new acid plant. As a consequence, Robson said, a lot of revenue will go to local suppliers, again creating a positive economic benefit for the community.

The Sudbury Area Mining Supply and Service Association (SAMSSA) has a close relationship with Vale. The association's goal is to represent the interests of the largest concentration of expertise in mining supply products and services from within the most recognized centre of excellence worldwide. The SAMSSA is well on its way to doing so, with a membership that is growing every year.

The SAMSSA represents about 120 mining supply and service providers from northern Ontario, and the organization is well aware of each contract presented by Vale for the Clean AER Project.

Dick DeStefano, the executive director of SAMSSA, feels this project may pave the way for environmental success across Canada and beyond.

"It's going to be hard to ignore," said DeStefano. "If there's a solution here and it works, there's going to be no excuse anywhere else for emitting pollution. But it will be the corporate responsibility of the company if they want to apply the technology that you have here."

So far, about 10 per cent of the contracts have been awarded, with more than half of the contracts issued to local service and supply providers. The SAMSSA is constantly informed of what's going on, so that it can in turn inform its members so they can bid on projects. DeStefano said Vale has a policy to vet projects locally first as much as it possibly can.

But one issue that this project is faced with—and one that extends to the mining industry as a whole—is a lack of workers. DeStefano said in general the industry is about 100,000 people short. He is hoping that most projects will stay local so that workers and suppliers will be present for the long haul.

Robson said Vale has had a long relationship with the SAMSSA.

"We are very lucky in Sudbury in terms of having such a skilled supply and service base in our backyard and we view that as a strategic advantage," said Robson. "When you look at projects like this, where we are able to source much of the work right here in Sudbury, it speaks to the numerous advantages."

The groundbreaking ceremony on June 22 saw a number of dignitaries in attendance, including the premier of Ontario, Dalton McGuinty, SAMSSA representatives, government cabinet ministers, community leaders, local residents and employees.

"We were very honoured to have the premier come help us break ground," said Robson. "It was definitely a community celebration, since the project is not just significant to our operations but for the community as a whole."

The ceremony took place at the new acid plant within the smelter complex and it was followed by a community luncheon. Robson said that about 200 members of the community came out and it made for a great celebration of the project.

An assessment of economic and community benefits for the project is currently being commissioned through KPMG in Sudbury; the assessment is intended to better quantify what $2 billion in spending will mean to the community. This report is expected to be completed this fall.

The preliminary numbers indicate:

• From 2011 to 2015, it is estimated that personnel related to the project will spend as much as $10 million on rental units in Greater Sudbury.
• Over the term of the Clean AER Project, incremental hotel and motel revenues arising from the project could be in the order of $8 million.
• Retail sector spending by individuals involved in the Clean AER Project is anticipated to be a major contributor to the local economy, with an estimated $74 million from 2011 to 2015.

"We definitely see the value in this investment and it's going to be returned," said DeStefano. "We must create an environment that is very much part of the 21st century—which is using the green eco model that everyone wants to see. In order to be an industrial site, you have to meet high standards. We hope Vale far exceeds them. It will mean we'll have a place to breathe and live with less damage to our environment."

Vale's Clean AER Project will involve:

• 32,000 cubic metres of concrete (enough to fill 13 Olympic-sized pools)

• 44 km of pipe, 235 km of electric cable and 9.4 km of handrailing (from end to end, more than twice the distance from Sudbury to North Bay)

• 1,400 metres of ladders

• 15,500 metric tonnes of steel and ducting (about ¼ of the amount of steel in the Empire State Building)

• 32,000 cubic metres of concrete (enough to fill 13 Olympic-sized pools)

• 44 km of pipe, 235 km of electric cable and 9.4 km of handrailing (from end to end, more than twice the distance from Sudbury to North Bay)

• 1,400 metres of ladders

• 15,500 metric tonnes of steel and ducting (about ¼ of the amount of steel in the Empire State Building)