Xstrata in talks to seal Sudbury deal by yearAccording to Reuters:
https://www.reuters.com/article/marketsNews/idLTAN1447987820071114?rpc=44
Xstrata in talks to seal Sudbury deal by year-end
Wed Nov 14, 2007 12:38pm EST
NIAGARA-ON-THE-LAKE, Ontario, Nov 14 (Reuters) - Xstrata Nickel has been in talks with its unionized workers and CVRD-Inco about options for cost savings in the Sudbury nickel basin, and will announce its plans by the end of the year, its chief executive said on Wednesday.
Ian Pearce, head of the nickel-mining arm of Anglo-Swiss miner Xstrata Plc (XTA.L: Quote, Profile, Research), said options could include asset sales or a joint venture involving facilities in the Sudbury area in northern Ontario, where the two companies' mines and smelters operate nearly cheek-by-jowl in some instances.
CVRD-Inco is a unit of Brazil's Companhia Vale do Rio Doce (VALE5.SA: Quote, Profile, Research).
Cutting costs has been a goal for both companies since Xstrata and CVRD took over Canadian nickel miners Falconbridge and Inco, respectively, last year.
"I can't say whether it's a joint venture, or discreet sales of assets or anything like that, because we haven't gotten to the position to make that decision yet," Pearce told Reuters on the sidelines of an economic summit in Niagara-on-the-Lake.
"It will be one of those, or a mutation of those."
Coming to agreements with the unions will be necessary to completing a deal, but the situation is complicated somewhat as Xstrata Nickel's Sudbury workers are represented by the Canadian Auto Workers union, while CVRD-Inco workers are represented by United Steelworkers.
A Sudbury deal is key to Xstrata realizing an expected $300 million in cost savings from the Falconbridge acquisition. (Reporting by Cameron French; Editing by Rob Wilson)
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