RENO, NV –Talks were scheduled to resume Wednesday as Xstrata Nickel and the union representing the Swiss mega-miner’s Sudbury, Ontario, operations try to reach a new contract before midnight on February 1.
Reuters reported that late on Tuesday, the Canadian Auto Workers union presented Xstrata with a counter proposal that covered all of the contract language and benefits. An assistant to the President of the CAW said Xstrata was supposed to come back with their own version of a settlement.
If the parties don’t reach an agreement by the time the current contract expires, more than 1,000 mine, mill and smelter workers could go on strike. The union was already preparing for a work stoppage by moving trailers to the entrances of mine sites and bringing in firewood supplies.
Xstrata Nickel spokesman Ian Hamilton said that some progress has been made. However, he added, “there are still areas where the parties remain apart.†Among the issues yet to be resolved are pay, vacation schedules and the ability of workers to return to jobs from which they were involuntarily shifted.
The Sudbury nickel operations produce about 4% of the world’s nickel supplies.
Nickel markets have been in a panic over the possibility of a supply disruption at Xstrata’s Sudbury operations. LME inventories have already hit record low levels while considerable short covering also is taking place. A prolonged strike at Sudbury would result in major ramifications for the nickel market and send already record nickel prices soaring even higher.
Nickel’s main use is for the manufacturing of stainless steel. Strong economic growth in developing nations, such as China and India, has generated record demand for nickel. Meanwhile, already low inventories are being impacted by the delays in bringing new nickel mines into production./(Mineweb.com)
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