Not much news out of Cobalt. Lots of anxious shareholders wondering what is going on [confer Stockhouse]. In the fullness of time we'll know if its the tide of fortune or the shallows of despair.
Anyhow, a little news from the Great White North in re Ni and Falconbridge.
Annual report to be mailed soon, mes amis?
Falconbridge strike seen almost inevitable
(UPDATE: Changes throughout. Adds context. Adds corporate quotes in paragraphs 6 and 7 and analyst quotes in paragraph 11. Adds production statistics in paragraph 9.)
By Scott Anderson
TORONTO, July 31 (Reuters) - With less than 24 hours before workers at Falconbridge Ltd.'s (Toronto:FL.TO - news) Sudbury operations were set to go on strike, union officials said on Monday the chances of averting a work stoppage at one of the world's biggest nickel-mining complexes were slim.
``We're still meeting,'' said Hemi Mitic, spokesman for the Canadian Auto Workers union. ``I would say it's virtually impossible to get to a collective agreement at this stage.''
Union and company negotiators have yet to tackle the key monetary issues of wages, pensions and benefits. The company was expected to table its formal financial proposal sometime on Monday.
Falconbridge, one of the world's largest nickel producers, has put more than 80 demands on the table, making it difficult for the two sides to reach an agreement before the union's August 1 strike deadline at the Sudbury, Ontario, operation.
Over the weekend, the company accused the union of using delay tactics and said little progress had been made after the union requested late on Saturday a breakdown of the company's proposals on non-monetary issues including sub-contracting, transfers and job postings.
``It's still the same old thing. They're still harping on a number of issues, but it just doesn't look good,'' said Falconbridge spokesman Craig Crosby. ``But we're going to do everything we can to reach an agreement today.''
``We're pretty pessimistic. We're obviously going to put our best foot forward and see if we're able to reach an agreement. But it doesn't look good.''
The contract for the 1,260 workers at the big nickel-copper mine, mill and smelter operations expires on Tuesday at 8 a.m. (1200 GMT).
The Sudbury operations produce about 4 percent of the worldwide nickel concentrate output or about 35,000 tonnes a year. Its smelter produces about 55,767 tonnes of nickel matte.
Analysts see the price of nickel rising significantly if the two sides fail to reach an agreement. Nickel was trading at about $7,660 a tonne ($3.42 a pound) on Monday.
``A strike means the market will rally,'' said Terence Ortslan, at T.S. Ortslan & Associates, in Montreal. ``If they walk away, it means there were so many issues on the table.''
This would mark the second strike in three years at the company's Sudbury operations. The workers were off the job for 28 days in 1997.
($1 equals $1.49 Canadian) |
