Vale says closing complies with promises
ANDY HOFFMAN


MINING REPORTER

A Brazilian mining giant says plans for a two-month shutdown of its Sudbury, Ont., nickel mining operations do not violate commitments the company made to the Canadian government to win approval for its $19-billion takeover of Inco.


When it bought the Canadian nickel miner in 2007, Companhia Vale do Rio Doce RIO-N promised Ottawa it would not lay off workers for three years. Now the company says dismal market conditions are forcing it to shutter operations in Sudbury in June and July and temporarily lay off workers.


"We take our commitments to the government very seriously and we believe we are in compliance with the undertakings," Vale spokesman Corey McPhee said yesterday.


In a statement released on Sunday, federal Industry Minister Tony Clement said the government has "demanded answers from the company," and will be "exploring all available options, including legal options, to address the situation."


Mr. McPhee said Vale is preparing its response to a list of government questions.


The tough talk from Mr. Clement contrasts with the government's reaction when Swiss-based Xstrata PLC cut nearly 700 jobs in Sudbury in February after making a commitment to Ottawa in 2006 not to lay off workers for three years. Mr. Clement initially claimed to have garnered $290-million in "new money" spending commitments from Xstrata. But the company had already outlined plans to spend the cash in Sudbury in its annual report.

FNX Responds to Sudbury Shutdown

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TORONTO, ONTARIO--(Marketwire - April 17, 2009) - FNX Mining Company Inc. (TSX:FNX)("FNX" or "the Company") reports that in response to Vale Inco's announcement yesterday that it will extend its planned three week scheduled maintenance shut down in May by an addition eight weeks from June 1 to July 27, 2009, FNX is considering several possible production alternatives for its Sudbury mining operations and will provide more detailed guidance when it becomes available.


FNX has a strong cash position and is well funded, regardless of any short-term production interruptions, to continue the planned development of its high-grade, copper-nickel-precious metal Levack Footwall Deposit for production start up in 2010 and to continue the planned underground development and detailed definition drilling at its Podolsky mine. FNX will also go ahead with its expanded surface exploration program announced earlier this week.


Possible production alternatives under consideration by the Company include; continue production at its Sudbury operations at current levels and stockpile the ore for processing when Vale Inco resumes operations, temporarily suspending some or all production and re-initiate production close to the lifting of the shutdown and exploring the possibility of sending ore to other processing facilities.


Terry MacGibbon, Chairman and CEO of FNX stated that, "FNX is carefully considering several production alternatives and will provide more detailed guidance when it becomes available, however this shutdown does not delay key development of the LFD for start up production in 2010. We will make ever effort to minimize the effect of the additional eight weeks of shut down and to achieve our 2009 planned production targets while continuing to closely manage our expenditures, cash flow and balance sheet".