Xstrata PLC's full-year net profit fell from $2.77 billion from $4.7 billion in 2008, or roughly 41 per cent, the company reported Feb. 8.

The company's CEO, Mick Davis, said in a press release the company's “rapid and comprehensive response” to the economic downturn in the early part of 2009, “enabled a creditable result in extremely challenging markets in 2009.”

Xstrata laid off 686 workers at its Sudbury, Ont. operations last year, and recently announced it will be shifting production in May from its Kidd metallurgical site in Timmins, Ont. to smelters and refineries in Quebec, cutting approximately 670 jobs.

“It has been matched by a swift resumption of investment in key growth projects that will drive substantial volume growth and reductions in operating costs, marking the next stage of Xstrata’s transformation,” the press release said.

“In my opinion, the medium term outlook for commodity demand remains very promising, driven by the ongoing urbanisation and industrialisation of high-growth, populous economies, with China and other industrialising countries taking active steps to rebalance their economies towards domestic consumption-led growth over the next decade.”

As Xstrata PLC announced its financial results, the Canadian Auto Workers union (CAW), which represents Xstrata workers in Sudbury and Timmins, put out a press release calling on the Canadian federal and provincial governments to investigate Xstrata's reasons for closing the Kidd site.

Should this investigation conclude that Xstrata has little reason to close the Timmins site, both levels of government must force Xstrata to divest their Timmins assets, the CAW said, in a press release.

"Xstrata must not be allowed to extract local resources without creating local jobs," said CAW president Ken Lewenza, in the press release.

According to the Investment Canada Act, the federal industry minister retains the power to review the implementation of an investment (by a foreign company) and determine whether it varies from the original application and still results in a "net benefit" to Canada, the press release said.

If this is not the case, federal Industry Minister Tony Clement can force a company to remedy the situation or even sell some of its assets.

In Ontario, the Mining Act requires that ore and minerals be treated and refined in Canada. Failing to do so allows the minister of natural resources to withdraw the company's mining rights.

"We're calling on the federal and provincial government to enforce a moratorium on the closure, until this matter can be properly investigated," Lewenza said.