Xstrata announces layoff of 686 at Sudbury operations

Xstrata Nickel today announced an immediate three-day shutdown of operations and the layoff 686 positions at its Sudbury operations.

The company made the announcement this morning on its web site.

The restructure was "in response to ongoing challenging market conditions."

The company also said it was closing immediately its Craig and Thayer-Lindsley operations which had reached their end of life.

In addition, the Fraser Mine Complex will be placed on a care and maintenance schedule. Associated support and administrative functions will be reorganized. The Strathcona Mill, with an annual capacity of 2.7 million tonnes of ore, will be reduced to two work shifts from four as a result of reduced feed. In addition, the Fraser Morgan development project will be deferred.

Production from the company's Sudbury smelter is not expected to be affected as shortfalls from the Sudbury production cuts will be made up for with concentrates from the company's Nickel Rim South and Xstrata Nickel Australasia operations. Concentrates will also continue to be processed from Xstrata Nickel’s Montcalm and Raglan operations, together with third-party feed.