SALABERRY-DE-VALLEYFIELD, QUÉBEC--(Marketwired - Feb. 13, 2017) - Noranda Income Fund (TSX:NIF.UN) (the "Fund") has received notice that unionized workers at its zinc processing facility in Salaberry-de-Valleyfield, Québec, affiliated with the United Steelworkers of America, have initiated a strike effective February 12, 2017.
In response to the strike, management at the processing facility is implementing measures to secure operations in accordance with plant safety procedures. Management expects that this activity will be completed in the coming days with partial production resuming thereafter with staff operating the facility.
As previously disclosed, the Fund will be operating under market terms starting on May 3, 2017. This change will have a substantial impact on the Fund's results, compounded by tight zinc concentrate conditions which have led to historically low spot treatment charges.
"We have been preparing for market terms for some time given the expected adverse impact on our financial results," said Ms. Eva Carissimi, President and Chief Executive Officer of Canadian Electrolytic Zinc Limited. "Operating in a market term environment and in a tight zinc concentrate market makes it imperative that we explore all scenarios to lower expenses and improve plant safety and efficiency."
As previously disclosed, management has been in discussion with the union since November 2016 with a view to arriving at a mutually acceptable new collective agreement. Management remains committed to entering into a new collective agreement, the terms and conditions of which will allow the processing facility to resume full operations on a profitable basis over a full market cycle, so as to ensure its future viability.
The Fund will provide updates as appropriate.
Noranda Income Fund is an income trust whose units trade on the Toronto Stock Exchange under the symbol "NIF.UN". Noranda Income Fund owns the electrolytic zinc processing facility and ancillary assets (the "Processing Facility") located in Salaberry-de-Valleyfield, Québec. The 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 zinc customers are located. It produces refined zinc metal and various by-products from sourced zinc concentrates. The Processing Facility is operated and managed by Canadian Electrolytic Zinc Limited, a wholly-owned subsidiary of Glencore Canada Corporation.
Further information about Noranda Income Fund can be found at