HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Inco not meeting with Clement

posted on Apr 22, 2009 09:13AM

Vale Inco, Clement won't be meeting (comment on this story)

Posted By HAROLD CARMICHAEL AND CAROL MULLIGAN, THE SUDBURY STAR

Posted 4 hours ago

Vale Inco won't be meeting with Industry Minister Tony Clement about the nickel division's plans for an eight-week shutdown of its Sudbury operations in June and July, says a Vale Inco spokesman.

But it does have some explaining to do to the federal minister to justify the shutdown.

"The government has sent us a letter of request with some considerable explanation seeking clarity about our announced shutdown," Cory McPhee said Tuesday in a telephone interview. "That's their prerogative. We are answering their questions right now."

In a statement issued Sunday, Clement said word of Vale Inco's June 1-July 27 shutdown "is certainly not welcome news to the Government of Canada or to the people of Sudbury. I am very concerned that Vale Inco intends to proceed with this shutdown."

Clement said the federal government is demanding answers from Vale Inco to justify the shutdown, in light of the purchase terms Vale agreed to in 2006 when it bought Inco Ltd.

"Vale made legally binding commitments under the Investment Canada Act ... I expect to be fully respected on behalf of the workers," said the minister. "Over the next few days, we will be exploring all available options, including legal options, to address this situation."

The eight-week Sudbury production shutdown will follow a one-month maintenance shutdown in May.

More than 4,000 affected employees don't have enough vacation time to cover the three-month period and are being advised to turn to Employment Insurance.

Pema Lhalungpa, Clement's press secretary, said the questions being asked of Vale Inco can't be made public because agreements between the department and companies are confidential.

Sharing details of such agreements can result in criminal charges, said Lhalungpa. That is why Clement refused to disclose agreements the Government of Canada signed with Vale Inco and Xstrata Nickel when asked to do so by two Sudbury MPs.

Lhalungpa said the MPs -- Sudbury New Democrat Glenn Thibeault and Nickel Belt New Democrat Claude Gravelle -- are both aware it would be a criminal offence to make details of those deals public.

Lhalungpa pointed out Clement's request to Vale Inco falls under Section 39 of the Investment Canada Act, under the title "Remedies, Offences and Punishment -- Ministerial demand."

The section is legally complicated, but it states the Industry minister "may send a demand" to a non-Canadian company, requiring it "to cease the contravention, to remedy the default, to show cause why there is no contravention of the Act or regulations or, in the case of undertakings, to justify any non-compliance therewith."

A ministerial demand issued under the section indicates the nature of the proceedings that may be taken against the company, but Lhalungpa would not comment on those.

In a story in the Globe and Mail on Tuesday, McPhee was quoted as saying Vale Inco has not violated commitments it made to the Canadian government to have its $19-million takeover of Inco approved in 2006.

"We take our commitments to the government very seriously and we believe we are in compliance with the undertakings," McPhee told the Globe.

Vale Inco is in contract talks with Steelworkers' Local 6500, which represents more than 3,200 production and maintenance workers in Sudbury. The existing contract expires May 31.

According to the purchase agreement Xstrata signed with the federal government in 2006 to acquire Falconbridge Limited, Xstrata pledged not to have any layoffs of operating staff at Canadian operations for three years.

In early February, Xstrata Nickel announced permanent layoffs affecting 686 employees in Greater Sudbury.

In early March, Vale Inco laid off 261 Greater Sudbury employees.

When the Xstrata Nickel announcement was made, Clement said through extensive talks with the nickel division, he was able to get Xstrata Nickel to make further commitments to Greater Sudbury including an investment of between $290 million and $390 million in the area during the next two years.