- Vale Inco
company_name = Vale Inco
company_type = Wholly owned subsidiary
company_slogan = "Building the world's leading nickel company."
foundation = 1902
Toronto, Ontario, Canada
key_people = Murilo Ferreira,
Parviz Farsangi, EVP & COO
Jennifer Maki, EVP & CFO
industry = Mining
products = Nickel, copper, cobalt, PGMs
homepage = [http://www.valeinco.com/ www.valeinco.com]
Vale Inco (formerly CVRD Inco) [cite web
title=Welcome to Vale Inco
format = HTML
accessdate=2007-11-29 ] is a wholly owned subsidiary of the Brazilian mining company Vale. It is Vale's
nickel miningand metals division and is headquartered in Toronto, Ontario, Canada. It produces nickel, copper, cobalt, platinum, palladium, rhodium, ruthenium, iridium, gold, and silver. Prior to being purchased by CVRD (now Vale) in 2006, Inco was the world's second largest producer of nickel, and the third largest mining company outside South Africaand Russiaof platinum-group metals. It was also a charter member of the 30-stock Dow Jones Industrial Averageformed on October 1, 1928.
The Canadian Copper Company was founded following the discovery of copper deposits in Sudbury, Ontario. Initially, ore was shipped for smelting to a plant in Constable Hook,
New Jersey, owned by the Orford Copper Company. Processing soon revealed that the ore was also rich in nickel and exploration tests revealed an enormous potential. In 1902 the International Nickel Company, Ltd. was created in Camden, New Jersey as a joint venture between Canadian Copper, Orford Copper, and American Nickel Works. In 1916, the International Nickel Company of Canada, Ltd. was incorporated as the operating company in Copper Cliff near Sudbury, and in 1918 the company built a new refinery in Port Colborne. The International Nickel Company of Canada, Ltd., first began using the trade name Inco in 1919.
In 1929 the corporation underwent a major expansion by absorbing the British-owned
Mond Nickel Company. A head office was established in Toronto. During World War II, Inco's Frood Mineproduced 40% of the nickel used in artilleryby the Allies. In 1972 the Inco Superstackwas built in Sudbury. In 1976, the company’s name was officially changed to Inco Limited.
In order to generate cash Inco sold its manufacturing sites of nickel alloys to
Special Metals Corporationin 1998. Special Metals Corporation however filed Chapter 11 in March 2002.
October 11, 2005, Inco announced a friendly takeover bid to buy out the operations of longtime rival Falconbridge for $12 billion. If approved, the deal would have made Inco the world's largest producer of nickel. Xstrata(which already owned ~20% of Falconbridge shares) subsequently submitted a hostile takeoverbid for Falconbridge, resulting in a bidding war between Inco and Xstrata. The Xstrata bid was successful, but not before Falconbridge employed a poison pill to delay the acquisition, raising its share price from $28 to $62.50 in the meantime. Teck Comincosubmitted a hostile takeover bid to purchase Inco on May 8, 2006for $16 billion if it agreed to abandon its takeover of Falconbridge. On June 26of the same year, Phelps Dodgesubmitted a friendly takeover bid to purchase a combined Inco and Falconbridge for around $40 billion; that offer was also withdrawn because of the failure of the Inco-Falconbridge merger.
August 14, 2006Brazilian mining company CVRD extended an all-cash offer to buy Inco for $17 billion. That offer received approval from the Canadian government's investment review agency on October 19, and was accepted by Inco shareholders on October 23. Part of the takeover deal was that CVRD would operate Inco as a separate nickel mining division; all of CVRD's nickel operations, including mines at Onca Pumaand Vermelhoin Brazil, were transferred to Inco's management. Inco was delisted from the NYSE on November 16, 2006 and the TSX on January 5, 2007. According to its current web site, Inco is now a wholly owned subsidiary of Vale (formerly CVRD).
In 2006 Inco was removed from the
FTSE4GOOD indexfor failing to meet their human rights criteria. [cite web
title= Semi-Annual Review of the FTSE4GOOD Indices
format = PDF
accessdate= 2007-11-29] The company has had disputes with native groups and environmental concerns over mine runoff.
Employees for Inco in Canada are represented by the
United Steelworkersthroughout all the mergers. Because of the mergers the United Steelworkerssigned an agreement with all the unions that represent mining workers in countries where Vale/Inco operate to ”...work together cooperatively and strategically as global partners, to build the bargaining power of workers” [United Steelworkers. Steelworkers and Global Union Partners Announce Unity Accord. March 20, 2007. Available at http://www.usw.ca/program/content/3964.php?lan=en] The unions include Confederação Nacional dos Trabalhadores no Setor Minera, SINTICIM, Union syndicale des ouvriers et employés de Nouvelle-Calédonie, Union des Syndicats des Travailleurs Kanak et Exploités, Fagforbundet for Industri og Energi, Construction, Forestry, Mining and Energy Union, and the United Steelworkers.
Coleman-McCreedy East Mine
Copper Cliff North Mine
Copper Cliff South Mine
Creighton Mine, Vale Inco's flagship nickel mine
Newfoundland and Labrador, Canada
Voisey's Bay Nickel Company- a wholly owned subsidiary of Vale Inco
Indonesian joint venture PT Incois located in Sorowako
Inco has been immortalized in the
Stompin' Tom Connorssong " Sudbury Saturday Night".
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