Between Xstrata Nickel Sudbury Operations and Canadian Auto Workers Local 598

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SUDBURY, ONTARIO--(Marketwire - Feb. 2, 2010) - Xstrata Nickel is pleased to announce that it has successfully renewed a three-year Collective Agreement with the Canadian Auto Workers Sudbury Mine, Mill and Smelter Workers Union Local Union 598, representing production and maintenance employees at its operations in Sudbury.


The Agreement was ratified by the Union membership on Tuesday evening, after negotiations that began in mid December.


Highlights of the Agreement include an annual cost of living allowance with a 20-cent hourly wage increase in the third year, C$2,500 Continuity Allowance, a new nickel bonus formula that reflects current business realities, competitive pension and benefit improvements that adjust for inflation, and a new employee performance-based incentive program linked to the achievement of business targets. The Agreement also provides a framework for a new joint Company-Union initiative aimed at mitigating longer term challenges with the current Defined Benefit Pension Program.


In addition, Xstrata Nickel plans to reactivate copper mining at the Fraser Mine in February 2010 and the accord provides for a workforce transition agreement that enables the recall of 100 workers to fill vacant positions, while minimizing any impact on the existing Nickel Rim South workforce as this project ramps up to full production in the second quarter of this year.


"We are very pleased our employees have supported the Agreement and shown that they are committed to the success of Xstrata Nickel's Sudbury Operations," said Marc Boissonneault, Vice-President, Sudbury Operations. "Together, we can move forward to successfully transition Nickel Rim South to full operation, ramp up production at our Fraser Copper Mine and pursue performance enhancements at our Strathcona Mill and Sudbury Smelter, positioning our Sudbury Operations for success for the longer term."