INCO earmarks $287 million for Thompson development

Three new shafts and three miles of haulage make up the bulk of Inco’s (TSE) recently announced $287-million investment for Thompson, Man. The three shafts, each 3,700 ft. deep, will develop the 1-D orebody, the northerly extension of the original Thompson underground mine which remains to this day the mainstay of the Inco operation. One shaft will be for men and materials, the other two for ventilation.

Ore will be moved underground by a new automated rail haulage system, three miles in length on the 3600 level, and will deliver to the existing T-1 shaft. Mine production from the 1-D orebody will begin in late 1992 and will reach 3,500 tons per day by 1997 for a yield of 37 million lb. nickel per year.

The cost of this principal part of the program will be $209 million.

The second part of the investment comprising $78 million will see deepening of the Birchtree shaft from the 3,430-ft. level to the 4,250-ft. level by mid-1992. The deepening will permit mining to the 3,900-ft. level.

The Birchtree mine was in production during 1966-77, when it was placed on standby. Dewatering of the shaft started in 1988 and the first production of the new regime was hoisted May, 1989. By 1997, production is expected to be 4,500 tons per day and at this level, Birchtree will be contributing 34 million lb. nickel per year.

Both the 1-D and Birchtree mines will employ the latest in technology and will double current underground productivity.

The Manitoba Division produces 100-110 million pounds of nickel annually, slightly over one quarter of Inco’s total production and this major investment will ensure Thompson’s contribution well into the 21st century.

In addition to investing in mine development, Inco is increasing its 1991 exploration expenditures to $7 million for further delineation of ore reserves in the 80-mile-long Thompson nickel belt. This will consist of 130,000 ft. of drilling.

“We’re in the nickel business, and in northern Manitoba, for the long haul,” said Lorne Ames, president of the Manitoba division, which employs 2,000.

“As long as we stay on the leading edge of technological progress and dedicate ourselves to high quality and low cost, we have a bright future,” he added.

The projects have received all necessary Manitoba government approvals. As part of the corporate approval process, the projects have been subjected to Inco’s environmental impact assessment review, and regular environmental audits will ensure compliance with corporate policies and government regulations.

“This investment is positive evidence of our determination to continue as the leading low-cost nickel producer with about a one- third share of a growing free market,” said Donald Phillips, Inco’s chairman, president and chief executive officer.

This investment will also bring to more than $1 billion the amount that Inco has invested in the Thompson facilities over the 30 years since discovery of the orebodies.

In addition to this $287 million, Inco also committed itself to a $108- million program in 1986. This included development of the Thompson 1-C orebody, Birchtree reactivation and the Thompson Open Pit South. Thus, over the space of four years, nearly $400 million has been committed to the Manitoba nickel belt. It is a massive investment by any measure and a demonstration of Inco’s faith in Manitoba’s potential.