Xstrata Nickel

Xstrata Nickel

February 28, 2007 07:21 ET

Xstrata Nickel and USW Local 2020 Reach Tentative Collective Agreement

SUDBURY, ONTARIO--(CCNMatthews - Feb. 28, 2007) - Xstrata Nickel announced today that the company's Sudbury operation has reached a tentative agreement for a new Collective Agreement with USW-Local 2020, Unit 6855, which represents Xstrata Nickel's Office, Clerical and Technical (OCT) employees. There are approximately 200 employees in the bargaining unit. The prior agreement expired on February 28, 2007.

The new agreement has been unanimously recommended for acceptance by the Union's bargaining team. Details of the agreement will be presented to union members and will be followed by ratification voting.

"This set of negotiations was conducted in a spirit of constructive collaboration and hard work on both sides of the table," said Mike Romaniuk, Xstrata Nickel Vice-President of Sudbury Operations. "We are very pleased to have achieved this tentative agreement, which is both fair and competitive, and look forward to working with our employees to pursue our business objectives."

In 2006 and 2007, labour agreements for all Xstrata Nickel operating sites were reached without work disruptions. Expiry of these contracts is as follows:

- Sudbury production and maintenance workers: January 31, 2010

- Sudbury OCT workers: Feb 28, 2010 (pending ratification)

- Nikkelverk refinery (Kristiansand, Norway): April 1, 2008

- Falcondo (Bonao, Dominican Republic): November 30, 2008

- Raglan (Nunavut, Quebec): April 30, 2011

Background

Xstrata Plc is a major global diversified mining group, listed on the London and Swiss stock exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a smaller but profitable aluminium business, recycling facilities, additional exposures to gold, lead and silver and a suite of global technologies, many of which are industry leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, Jamaica, New Caledonia, Norway, Papua New Guinea, Peru, South Africa, Spain, Tanzania, the USA and the UK.

Xstrata Nickel, headquartered in Toronto, Canada, is one of the one of the group's global commodity businesses, comprising five mines and processing facilities in Ontario and Quebec, Canada; a ferronickel mine and processing facility in Bonao, Dominican Republic; and a refinery in Kristiansand, Norway. Xstrata Nickel has a significant portfolio of growth projects, including Nickel Rim South in Canada, Kabanga in Tanzania, and Koniambo in New Caledonia.

Xstrata Nickel is the world's fourth largest nickel producer, with annual managed production of more than 110,000 tonnes of refined nickel.

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