Statement by the Honourable Tony Clement, Minister of Industry, on the Announced Layoffs at Xstrata Nickel, Sudbury, Ontario

OTTAWA, ONTARIO--(Marketwire - Feb. 9, 2009) - "I am disappointed by the layoffs announced today by Xstrata Nickel and the impact they will have on Sudbury and the surrounding region. My thoughts go out to the men, women and families affected by this decision. I will ensure that any applicable job training or other programs to assist these workers will be made available through Human Resources and Skills Development Canada.

"Xstrata officials have explained that they are making a difficult decision in order to secure the company's future and create solid fundamentals for its operations here in Canada. Looking forward, Xstrata has assured me that Canada is still a key part of its growth strategy and that the company will continue to invest in Canada and in Sudbury.

"At my direction, my officials and I have had extensive discussions with Xstrata over the last several days resulting in additional undertakings that further the company's commitment to Sudbury. Xstrata has committed to investing, this year and next, between US$290 million and US$390 million in the Sudbury area. The company has committed to investing US$250 million in capital expenditures in order to bring its Nickel Rim South mine into full production by the end of 2010. It has also committed to initiating a comprehensive feasibility study on the Fraser Morgan project and the Fraser mine this year, to be completed in 2010 at a cost of approximately US$1 million. If the study demonstrates that these projects make business sense, Xstrata will invest at least US$100 million to develop them. Lastly, the company has committed approximately US$ 40 million in total exploration expenditures in Sudbury, Ontario and Nunavik, Quebec in 2009-2010.

"I recognize that these are challenging times for mining companies around the world, including Xstrata. While these expenditures by Xstrata are not an immediate help to those laid off today, they are a commitment to Sudbury and to Canada. They ensure that this company will continue to be part the community for the foreseeable future."