OTTAWA, Feb. 9 (Chinese media) -- Switzerland-based Xstrata Plc said Monday it is eliminating 686 permanent jobs and defer some projects from its operations in Canada.
The company said two of its mines, Craig and Thayer-Lindsley mines in Sudbury, Ontario, will cease operations immediately.
The Strathcona Mill will be reduced to two work shifts from four as a result of reduced feed.
Xstrata also said its Fraser Morgan development project, also located in the area, will be deferred. The company said the project "will be evaluated on an ongoing basis and may be re-initiated when economic conditions allow."
Mining companies around the world have been hit by falling prices for metals and commodities amid the recession.
"Our leadership team is taking proactive and decisive measures during challenging times," said Ian Pearce, Xstrata Nickel's chief executive. "The continued decline of the economic environment and deteriorating commodity markets, coupled with high operating costs particularly at our older mines, are negatively impacting our Sudbury operations."
The company said the moves will not affect the ramp-up of production at its Nickel Rim South project in Sudbury. Xstrata said the development is still on track to produce approximately 7,400 tons of nickel this year.
The mine is projected to generate annual production of approximately 18,000 tons of recoverable nickel by early 2010.
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