Vale Inco has started the work necessary to build a nickel processing facility in Long Harbour, Newfoundland, Canada. The company began clearing the site of the project, located about 100km west of St. John’s on the week of 6 April 2009. The plant, expected to produce 50,000tns of nickel a year when it comes online in 2013, would be the first in the mining industry to use hydromet technology for commercial purposes. The technology – a process using water that is considered to be more energy efficient than traditional smelting methods – would be used to extract nickel from the Voisey’s Bay concentrate in Labrador. The project development comes as the company undergoes a restructuring. Vale Inco spokesman Bob Carter says the company remains committed to proceeding with the project, despite the global economic downturn and nickel prices that have dipped over the past year. The USD 2.2 billion project will employ up to 1600 people during its peak construction phase and will need 450 workers during its operation.