Canada Limited (formerly Vale Inco, CVRD Inco and Inco Limited;
for corporate branding purposes simply known as "Vale" and pronounced
/ˈvɑːleɪ/ in English) is a wholly owned subsidiary of the
Brazilian mining company Vale. Vale's nickel mining and metals
division is headquartered in Toronto, Ontario, Canada. It produces
nickel, copper, cobalt, platinum, 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 Africa and Russia of platinum
group metals. It was also a charter member of the 30-stock Dow Jones
Industrial Average formed on October 1, 1928.
1 Pre-Vale history
2 Takeovers (2005–2006)
4 Labour relations
5 Current operations
5.1 Ontario, Canada
5.2 Manitoba, Canada
5.3 Newfoundland and Labrador, Canada
5.5 New Caledonia
6 In popular culture
Share of the International
Nickel Company, issued 7. Juni 1916
The logo of Inco Limited and CVRD Inco, prior to CVRD's rebranding as
Vale on November 29, 2007
The 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
Processing soon revealed that the ore was also rich in nickel and
exploration tests revealed an enormous potential. In 1902 the
Nickel Company, Ltd. was created in New York, NY 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 in
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 expanded by absorbing the British-owned Mond
Nickel Company. A head office was established in Toronto. During World
War II, Inco's
Frood Mine produced 40% of the nickel used in artillery
by the Allies. Inco also maintained a machining plant located in
Sterling Forest, New York. The Sterling Forest Site was sold and is
now owned and occupied by International Business Machines. In 1972 the
Inco Superstack was 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
Special Metals Corporation
Special Metals Corporation in 1998.
Corporation however filed Chapter 11 in March 2002.
On 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
Xstrata (which already owned ~20% of Falconbridge shares)
subsequently submitted a hostile takeover bid for Falconbridge,
resulting in a bidding war between Inco and Xstrata. The
was successful, but not before Falconbridge employed a poison pill to
delay the acquisition, raising its share price from $28 to $62.50 in
Teck Cominco submitted a hostile takeover bid to purchase Inco on May
8, 2006 for $16 billion if it agreed to abandon its takeover of
Falconbridge. On June 26 of the same year,
Phelps Dodge submitted 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.
Transitional "Vale Inco" logo
On August 14, 2006 Brazilian 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
Vermelho in 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). Vale has since
changed the name of Vale-Inco to simply Vale, stating the change is "a
milestone that aligns it more fully with other Vale operations
worldwide and reflects its position as part of the world’s second
largest mining company"
Vale is exploring as of 2015 an IPO of its base metals unit for
$30–35 billion, in order to lighten its debt load.
In 2006 Inco was removed from the
FTSE4Good Index for failing to meet
their human rights criteria. The company has had disputes with
native groups and environmental concerns over mine runoff.
Employees for Inco in
Canada are represented by the United
Steelworkers throughout all the mergers. Because of the mergers, the
United Steelworkers signed 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” 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.
The INCO Superstack at the Vale
Copper Cliff smelter in Sudbury.
Coleman Mine, Vale's flagship nickel mine
Copper Cliff North Mine
Copper Cliff South Mine
Refinery in Port Colborne
Copper Cliff Smelter
Newfoundland and Labrador, Canada
Voisey's Bay Mine
Nickel Processing Plant
Vale Inco's Indonesian joint venture PT Inco, an Indonesian company
which is 20 percent publicly owned (IDX:INCO), is located in Soroako.
In August 2011, a dispute began because PT Inco broke its promise to
build 2 smelters in Pomala and Bahodopi in 2005 and 2010 respectively,
and to hand over 50,000 hectares of its 118,000-hectare concession to
locals. Based on the latest feasibility study, only the Bahodopi
smelter facility was possible. The dispute might go to court.
October 11, 2011: After starting operation of its third hydropower
plant at Karebbe with an output of 130 megawatts (MW), the company
would increase production from 73,000 metric tons to 120,000 metric
tons per year over the next five years. The first and second
hydropower plants are located in Larona and Balambano with a combined
output of 365 MW. As part of its
Corporate Social Responsibility
Corporate Social Responsibility plan,
the company has given a total of 8 MW from the plants to Perusahaan
Listrik Negara (Indonesian Government Electric Company) for free.
Vale Inco New Caledonia
In popular culture
Inco is a central theme in the
Stompin' Tom Connors
Stompin' Tom Connors song "Sudbury
Saturday Night". More recently, the Creighton Mine, owned by Vale and
hosting the Sudbury Neutrino Observatory, figures largely in the plot
of Robert J. Sawyer's
Neanderthal Parallax trilogy.
^ "Welcome to Vale Inco". Retrieved 2007-11-29.
^ "Vale Said to Hire Canada's Stikeman Elliott for Base Metals IPO".
Bloomberg. June 17, 2015.
^ "Semi-Annual Review of the FTSE4GOOD Indices" (PDF). Retrieved
^ United Steelworkers. Steelworkers and Global Union Partners Announce
Unity Accord. March 20, 2007. Available at
^ "Inco denies contract and environmental violations". August 22,
^ "Inco expands operations for sustainability". Octob