From Meteorite Impact to Constellation City: A Historical Geography of Greater Sudbury

10. From Falconbridge Nickel and Inco to Xstrata Nickel and Vale Canada (1928–2012)

Chapter 10 From Falconbridge Nickel and Inco to Xstrata Nickel and Vale Canada (1928–2012) The years between the Great Depression and the early 2000s brought dramatic changes to the Sudbury mining industry. While there were a few economic bumps along the way, the long-term trends for both mineral production and mining employment were positive until the early 1970s. These trends, in turn, encouraged an increase in Sudbury’s regional population, one that saw the city acquiring a skewed metropolitan status. Underlying these developments was the territorial control that the two mining giants had over the mining lands in the Sudbury area. “King” Inco dominated production well into the 1950s; by the end of that decade, however, Falconbridge Nickel Company also emerged, with strong financial backing from the United States government, as a multinational corporation capable of being a competitor. Throughout this period, the industry underwent major technological changes and, from time to time, experienced labour conflict with local unions. While the picture at the turn of the 1970s appeared to be rosy, hidden factors emerged that brought the boom years to a sudden and dramatic halt. By the end of the twentieth century, both Falconbridge Limited and Inco were forced by global events to shift into survival mode; despite major internal transformations and several attempts at mergers, the two companies eventually found themselves at the mercy of forces they were unable to control. The end result was the takeover of Falconbridge Limited by the Swiss mining group Xstrata Nickel and that of Inco by the Brazilian mining company CVRD. The events that shaped mining in the Sudbury area around the turn of the twenty-first century were unparalleled in the annals of Canada’s mining history. In the ensuing period, another interesting trend emerged involving the rise of smaller mining companies, some with the intention of acquiring mining properties and others seeking to become partners with the two existing giants. In 2012, the mining-based 162 From Falconbridge Nickel and Inco to Xstrata Nickel and Vale Canada economy of the area acquired a new dimension following Cliffs Natural Resources decision to locate its ferrochrome smelter north of Capreol. Mining Land Ownership The ownership of land along with its mineral and surface rights provided the basis for the creation and growth of the mining industry. The principal objective of mining companies in the Sudbury area was therefore to acquire as many mining properties as they could to ensure the long-term viability of their operations. In 1913, Ontario amended its Public Lands Act to ensure that any previous title granted by the Crown would automatically include the right to both the property’s surface and its underground mineral deposits. Mineral rights granted by the Crown thereafter were dependent on how the title was worded. After 1913, mining companies in the Sudbury area made every attempt to assure that their properties retained maximum rights. While there was considerable shifting of mining land ownership from one company to another over time, the overall pattern conformed to the oval shape of the Sudbury Igneous Complex. The pattern of ownership during the 1960s (illustrated in fig. 10.1) is similar to that which existed for much of the twentieth century. This important map reveals that the mining companies Figure 10.1   Mining Lands in the Sudbury Area, ca. 1960s. From Sawchuk & Peach Associates, Nickel Basin Planning Study (Toronto, ON: Department of Municipal Affairs, 1967), map following page 46. From Falconbridge Nickel and Inco to Xstrata Nickel and Vale Canada 163 at the time owned some 132 272 hectares of land around Sudbury. In geographical terms, it is perhaps more meaningful to describe it as being equivalent to the size of fourteen townships.1 Since this land has been retained mainly for mining purposes, the result is that almost 40 per cent of the territory of Greater Sudbury has been excluded from other development purposes. To complicate matters further, the spatial configuration of mining ownership resulted in a huge “divide” between the settled parts in the south along Highway 17 from those situated in the Valley, giving rise to a population and municipal setting unique in Canada. Falconbridge Nickel Mines Limited (1928–1970s) The origin of Falconbridge Nickel Mines extends back to 1901, at which time the worldfamous inventor Thomas A. Edison opened an office in Sudbury while exploring for nickel. He needed it to produce an alkaline storage battery cell that would...