NORANDA INCOME FUND

NORANDA INCOME FUND

February 19, 2008 07:30 ET

Noranda Income Fund Announces That the Employees of the Zinc Refinery Have Ratified a New Collective Agreement

SALABERRY-DE-VALLEYFIELD, QUEBEC--(Marketwire - February 19, 2008) - The Noranda Income Fund (TSX:NIF.UN) announced today that unionized employees at its Salaberry-de-Valleyfield zinc refinery, which is operated and managed by Canadian Electrolytic Zinc Limited, have voted 76% in favour of the new collective agreement. The refinery's 464 unionized employees are members of the United Steelworkers of America, local 6486.

Effective November 1, 2007, the new four-year collective agreement provides for a wage increase of $0.55 an hour (2%) for each of the first three years of the contract and a wage increase of $0.60 an hour (2.1%) for the last year of the contract. It also includes improvements to the benefits and retirement programs.

"We are happy to announce the renewal of the collective agreement. The union and management have worked hard to arrive at a four-year agreement and, in so doing, have contributed to the future success of the Fund," added Mario Chapados, President and Chief Executive Officer of the Noranda Income Fund's Manager.

Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". The Noranda Income Fund owns the CEZinc processing facility and ancillary assets (the "CEZinc processing facility") located in Salaberry-de-Valleyfield, Quebec. The CEZinc processing facility is the second-largest zinc processing facility in North America and the largest zinc processing facility in eastern North America, where the majority of its customers are located. It produces refined zinc metal and various by-products from zinc concentrates purchased from mining operations. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly-owned subsidiary of Xstrata Canada Corporation.

Contact Information

  • Information: Xstrata Zinc Canada Louis-Philippe Gariepy Corporate Affairs (514) 645-2311, ext. 2162
    Financial information: Canadian Electrolytic Zinc Limited, Noranda Income Fund's Manager Michael Boone Vice President & Chief Financial Officer (416) 775-1561 Email: mboone@xstrata.ca