NORANDA INCOME FUND

NORANDA INCOME FUND

December 18, 2007 13:29 ET

Noranda Income Fund Announces That the Union Rejected the Contract Offer; Remains Open to Further Negotiations

VALLEYFIELD, QUEBEC--(Marketwire – Dec. 18, 2007) - The Noranda Income Fund (TSX:NIF.UN) announced today that the unionized employees at its Salaberry-de-Valleyfield zinc refinery, which is operated and managed by Canadian Electrolytic Zinc Limited, have rejected the contract offer tabled by the company. The refinery's unionized employees are members of the United Steelworkers of America, local 6486. The union remains open to further negotiations.

"We remain confident that we will arrive at a settlement that satisfies both parties," said Mario Chapados, President and Chief Executive Officer of Canadian Electrolytic Zinc Limited, 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

  • Xstrata Zinc Canada Louis-Philippe Gariépy Corporate Affairs (514) 645-2311, ext. 2162
    or
    Financial information: Michael Boone Vice President & Chief Financial Officer of Canadian Electrolytic Zinc Limited, Noranda Income Fund's Manager (416) 775-1561 Email: request@norandaincomefund.com