FNX Mining Company Inc.

FNX Mining Company Inc.

September 23, 2009 08:53 ET

FNX 2009 Production Update

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2009) - FNX Mining Company Inc. (TSX:FNX) ("FNX or the "Company") reports that the Company completed its requirements under the terms of a temporary offtake agreement with Xstrata Nickel and shipped a total of approximately 157,000 tons of ore to Xstrata Nickel's Sudbury processing facilities by the end of August. The ore is stockpiled on surface and is scheduled to be processed by Xstrata Nickel in October (see news release dated August 14, 2009).

Since the beginning of September, FNX has continued its mining operations as planned and has been stockpiling the ore mined on surface at the Company's Podolsky and McCreedy West Mines for future processing at Vale Inco Limited's ("Vale Inco") Sudbury facilities.

The Company has recently been notified by Vale Inco, under the terms of the FNX-Vale Inco Offtake Agreement, to begin delivery of the ore stockpiled since the beginning of September and all future daily production to Vale Inco's Clarabelle Mill. FNX plans to resume ore deliveries from its Sudbury Operations to the Clarabelle Mill shortly. Current plans call for initial deliveries of ore to Vale Inco from an approximately 10,000 ton surface stockpile of crushed and sampled ore to be followed by additional ore deliveries directly from the Company's current operations at the Podolsky and McCreedy West Mines.

Ore shipments to Vale Inco were originally suspended on May 31, 2009, when Vale Inco's Sudbury mines and processing facilities closed for an extended maintenance shutdown. The suspension of ore deliveries was further extended by a labour disruption at Vale Inco's Sudbury Operations, which began July 13, 2009 and continues to the present time.

FNX's Sudbury Operations continue to operate under its original 2009 production plan and cost guidance disclosed in February 2009 (see news release dated February 6, 2009), although the timing of revenue recognition and cash receipts are delayed by the processing interruptions.

Development work on the LFD Deposit and Podolsky Mine continues as planned and remains on schedule.

Forward-Looking Statement

This news release contains certain forward-looking statements. These forward-looking statements are subject to a variety of risks and uncertainties beyond the Company's ability to control or predict, which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. In this news release, statements about possible future actions, ore deliveries and production are examples of forward-looking statements. There is no guarantee that any anticipated production plans or ore deliveries will be completed as anticipated. Forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to publicly update any such statement or reflect new information or the occurrence of future events or circumstances, except where required by securities regulations. Accordingly, readers should not place undue reliance on forward-looking statements.

Contact Information

  • FNX Mining Company Inc.
    Terry MacGibbon
    Chairman and Chief Executive Officer
    FNX Mining Company Inc.
    David Constable
    Vice President Investor Relations