Well, I got my answer:


MINING REPORTER -- Xstrata PLC has violated commitments it made to the federal government by laying off half its work force in Sudbury, but Ottawa won't take action against the Swiss mining firm. Instead, Industry Minister Tony Clement has accepted a pledge of $250-million (U.S.) in promised spending by Xstrata on a Sudbury mining project that is nearly complete and already close to production.


Blaming the collapse in nickel prices, Xstrata said yesterday it would close three mines in Sudbury, defer a development project and lay off 686 workers.


Industry Minister Tony Clement said government officials held talks with Xstrata executives over the weekend to discuss the planned job cuts.


"There's a disagreement with Xstrata and us as to whether they are violating some of the provisions under the Investment Canada Act," Mr. Clement told reporters outside the House of Commons.


In July of 2006, Xstrata made a number of pledges to Ottawa in order to win Investment Canada's approval for an $18-billion takeover offer for the mines' former owner Falconbridge and demonstrate the foreign buyout would be a "net benefit" to Canada.


Xstrata committed to "not make any layoffs of operating staff at any of Falconbridge's operating facilities in Canada for a three-year period," according to a company press release issued July, 25, 2006.


Late yesterday, Mr. Clement issued a statement saying he is "disappointed" by the Xstrata job cuts and the impact they will have on Sudbury and the surrounding region. Mr. Clement's statement said that the weekend discussions with Xstrata resulted in "additional undertakings that further the company's commitment to Sudbury."


Over the next two years, Xstrata has committed to spending between $290-million (U.S.) and $390-million in the Sudbury area, the statement said.


However, the bulk of that commitment, or about $250-million, will be put toward Xstrata's Nickel Rim South mine. Xstrata officials have touted the high-grade, low-cost operation as a mine that will be viable even at the current depressed metal prices.


Construction of the mine, which contains nickel, copper and precious metals is nearly complete. It is expected to begin production this year and will be at full capacity by 2010, producing about 18,000 tonnes of nickel per year.


Ottawa also trumpeted a commitment by Xstrata to spend $1-million on a feasibility study for its Fraser Morgan project. The mine was supposed to begin production later this year, but yesterday Xstrata said it was putting the project on hold.


"While these expenditures by Xstrata are not an immediate help to those laid off today, they are a commitment to Sudbury and to Canada," Mr. Clement said.


Dwight Harper, the president of Mine Mill Local 598 of the Canadian Autoworkers, which represents the majority of workers at Xstrata's Sudbury operations said the job cuts violate the agreement Xstrata made with the government.


"We're concerned that they are not living up to the commitment they made when they purchased Falconbridge in the first place....It's upsetting. Half of our work force is on permanent layoff," Mr. Harper said in an interview.


Under the Investment Canada Act, foreign takeovers of large Canadian companies must be approved by Industry Canada. Foreign companies often make commitments such as minimum spending and staffing levels to demonstrate that the buyout will be in the country's best interest.


Ian Pearce, the chief executive officer of Xstrata Nickel, said collapsing demand for nickel, which is used to make stainless steel, has forced the company to slash production.


"We've spoken with Industry Canada officials and they are aware of the reasons for our actions. This is clearly the result of circumstances that are beyond our control. The world has changed dramatically," he said.


The Xstrata Nickel CEO said the company has invested more than $700-million in Sudbury and added roughly 500 jobs since it won the hotly contested takeover battle for Falconbridge.


"It's not about minimizing capital, it's not about whether we are doing something to appease Investment Canada or not, it's about how do we make sure this business is here tomorrow," Mr. Pearce said