Possibility of Xstrata strike sends price of nickel higher
TheSpec.com - Business -
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The Canadian Press
TORONTO (Jan 20, 2010)
Nickel prices gained more than 3 per cent yesterday on news Xstrata's workers in Sudbury could be on strike by the end of the month, potentially joining striking Vale Inco workers to take 11 per cent of the world's nickel supply offline.
Employees of the former Falconbridge, bought by Swiss-based Xstrata in 2006, are in talks with the company and have voted in favour of going on strike if a deal isn't reached by the time their contract expires Jan. 31.
Concerns a strike at Xstrata Nickel's mines, mill and smelter in the Sudbury area would further deplete the world's nickel supply sent the price of the metal used to make stainless steel up by 28 cents to $8.71 US on the London Metal Exchange.
More than 4,000 workers have been on strike at Vale's nickel mining and processing operations in Sudbury, Labrador and Port Colborne since last summer.
But yesterday the first inkling of progress was reported. The United Steelworkers, representing striking workers at Vale's nickel-copper-cobalt mine in Voisey's Bay, said the company has submitted a counter proposal to workers and appears set to resume talks on a new contract.
