Xstrata, Vale partnership creates 75 jobs

The president of Mine Mill Local 598/CAW, Richard Paquin, said a partnership between Vale and Xstrata announced over the weekend is “good news” for his members.

Under the agreement, Xstrata Nickel will utilize its existing shaft infrastructure at Fraser Mine in Levack to mine mostly copper ore from Vale ore bodies currently only directly accessible from Xstrata Nickel’s Fraser Mine, according to a joint press release put out by both companies.

The project is expected to have a 10-year life, and will result in the permanent recall of 75 production and maintenance workers, belonging to Mine Mill Local 598/CAW, back to Xstrata.

Additionally, production at Vale’s Coleman Mine will be enhanced through the supply of increased fresh air ventilation from Xstrata, the press release said.

This will provide improved working conditions, and enable enhanced production and potential employment opportunities at Coleman’s 170 Ore Body mining project, set to begin production in 2012.

Almost 700 Xstrata Nickel workers were laid off in Sudbury in 2009, at the height of the economic recession.

After the 75 new jobs come on line, something Paquin expects to happen in July, there will be about 100 laid off Xstrata Nickel workers in Sudbury still on the company’s recall list. He said he’s hopeful the company’s Fraser Morgan mine will come on line this fall, and the final workers on the list will be recalled.

The union leader said it’s “very rare” for Vale and Xstrata Nickel to establish co-operation agreements. He said he hopes this means the companies will make similar deals in years to come.

“The future will tell, but it’s an indication that at least they’re talking to each other,” Paquin said.

Dick DeStefano, executive director of the Sudbury Area Mining Supply and Service Association (SAMSSA), said the agreement means more mining production in the city, which may translate to more business for his members. “The really fascinating part is (the two companies) actually shook hands on dealing with the same ore body, which is a precedent,” he said. “This is something we thought would happen five or six years ago. I guess they finally realized it was economical to shake hands rather than fight against each other.”

Marc Boissonneault, vice-president of Xstrata Nickel’s Sudbury operations, said in the press release the agreement allows both companies to take advantage of the “current robust copper demand. This ultimately benefits both organizations, employees and the community at large,” he said.

Jon Treen, general manager of Vale’s Ontario operations, said in the press release that the agreement unlocks “a resource that would not otherwise be productive. It will lead to significant value generation and operational benefits for both companies for years to come.”