Vale Claims Largest Environmental Investment in History with AER

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On June 22, mining powerhouse Vale Limited broke ground on the largest investment in environmentally-focused infrastructure in Canada to date. The two billion dollar infusion into Vale’s “Clean AER Project” has set the bar high for the mining industry in Canada; and with the government’s recent enforcement in emissions reduction, this move is significant in many ways.

Danica Pagnutti, Corporate Affairs Specialist at Vale, describes the action as ”unprecedented and unique to Vale’s Sudbury operations,” and says the effects of the investment are “difficult to compare to other mining companies and industrial settings.”

In other words, Vale knows that this is big; but without examples of successes or failures to look to, it is challenging to estimate the outcome.

On behalf of the company, Pagnutti says of AER: “Quite simply, it’s the right thing to do. It means cleaner air, by achieving a 70 per cent reduction in sulphur dioxide emissions and a significant reduction in dust and metals emission. It means economic prosperity, through the creation of 1,300 jobs at peak construction. And it means a sustainable future for our operations, by making the necessary investments now to ensure we operate responsibly for decades to come.”

Vale has chosen SNC Lavalin to lead the project based on a feasibility study and engineering bid. According to Pagnutti, SNC was chosen “on the basis of their proposal which included expertise relating to this technology and ability to plan, construct and manage large scale projects.” Furthermore, Pagnutti states they are the right company for the project based on their “knowledge related to understanding of the project development, particularly due to the brownfield nature.”

SNC Lavalin is excited about the project: “Vale is a repeat and long-standing client and we’re delighted they chose to retain us for the implementation phase of this major strategic environmental program,” said Feroz Ashraf, executive vice-president, SNC-Lavalin Group Inc. “We’ll be using the most appropriate and available commercial technology in our designs, and taking necessary considerations to reduce emissions over the life cycle of the project.”

AER stands for ‘Atmospheric Emissions Reduction’, which in essence means clean air. AER will see the sulphur dioxide emissions at Vale’s 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.

Vale hopes to achieve these reductions through a series of upgrades at the Sudbury plant. The construction will involve a complete retrofit of Vale’s smelter converter aisle, the construction of a new secondary baghouse and wet gas cleaning plant, a second Acid Plant, and new material SNC-Lavalin and Vale will do this all while the smelter is still in operation.

AECON Group was recently awarded an $85 million contract for site preparation and foundation construction for the project, a phase which will include construction of reinforced concrete foundations, pipe rack foundation and site preparation work for the process plant. Work also includes detailed excavation and backfill for these structures.

The forecasted end date to these upgrades is 2015, and if successful the construction will reduce the sulphur dioxide emissions to below the government’s goal of 66 kilotonnes a year. Vale hopes to achieve a respected 45 kilotonnes. This reduction is in addition to the 90 per cent reduction in sulphur dioxide emissions Vale has pushed for since the 70s, according to press releases.

This decision to invest this amount of money was not taken lightly. According to Pagnutti, “Vale made the final decision to invest $2 billion in the Clean AER Project in 2010 after studying the opportunity for nearly 10 years.” The decision was ultimately made to comply with new government regulations and “to make Vale’s Sudbury operations sustainable for the long term.”

This article was originally published on EPCM World and is re-published here with permission.