Vale Inco Reduces Workforce in Global Nickel Operations

by NationTalk on March 5, 20091067 Views

TORONTO, March 3, 2009 – Vale Inco Limited today announced a further restructuring of its global operations in response to ongoing challenges in the world nickel market.The restructuring will see the elimination of approximately 900 full-time positions in the nickel business distributed across the Company’s operations worldwide. The workforce reductions focused in large part on corporate, management and business support functions.

“Unfortunately the tough decisions announced today are necessary in these exceptional times” said Tito Martins, Vale Inco CEO and President. “The declining nickel price and reduced demand for nickel make it clear that continuing to operate in our current fashion is simply not sustainable. The measures we’re announcing today are intended to address the immediate health of the business and help reshape the organization for a long-term, successful and sustainable future.”

Affected employees at the company’s operations are in the process of being notified. Today’s news follows the announcement in December 2008 of a series of measures to reduce production, lower costs and reduce the global workforce.

(Backgrounder Attached)

About Vale Inco Limited
Vale Inco Limited is a leading producer of nickel, copper, cobalt and precious metals, based in Toronto, Canada. Vale Inco is a wholly-owned subsidiary of Companhia Vale do Rio Doce (Vale) (NYSE: RIO), one of the world’s largest mining companies. Vale Inco has over 14,000 employees worldwide and is committed to the pursuit of sustainable growth by operating with respect for the natural environment and being an ethically and socially responsible company.

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Contacts:

Cory McPhee
Director, External Communications
Vale Inco Limited
416.361.7669

BACKGROUNDER

Vale Inco’s Commitment to Canada

Employment

– Employment at Canadian operations up approx. 16% (1,057 people) from October 2006 to December 2008.

– Employment at Vale Inco head office (Toronto) up approx. 40% (100 people) from October 2006 to December 2008.

– Employment at Vale Inco Technology Centre (Mississauga) up approx. 59% (88 people) from Oct. 2006 to Dec. 2008

– Post-reduction (March 3, 2009), Vale Inco’s employment levels in Canada remain more than 700 employees higher than the number employed at Inco in October 2006.

Spending on Employment Programs

– In 2007, expenditures on employee recruitment, education, apprenticeship and training programs were 24.6% higher than levels prior to the acquisition.

– In 2007, Vale Inco’s expenditures on student employment programs were 112% higher than levels prior to the acquisition.

Spending on Exploration

– In 2008, Vale’s greenfield exploration in Canada grew from nickel alone to include uranium, copper and potash.

– Expenditures on greenfield exploration in Canada rose 162% above levels prior to the acquisition and the number of individuals employed in this pursuit more than tripled.

Investing in our Operations

– In 2007, sustaining capital expenditures in Canada of $674 million were 70% higher than levels prior to the acquisition.

– In 2008, sustaining capital expenditures in Canada of $729 million were 84% higher than levels prior to the acquisition.

– Vale Inco was the only major nickel producer in the world to increase production in 2008 – primarily as a result of recent capital investments in Canada.

Investing in our Environment

– In 2007, capital expenditures on environmental projects in Canada of $88.7 million were 36% higher than levels prior to the acquisition.

– In 2008, capital expenditures on environmental projects in Canada of $122.7 million were 88% higher than levels prior to the acquisition.

Investing in our Communities

– In 2007 and 2008, Vale Inco’s charitable contributions were on average 107% greater than levels prior to the acquisition.

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