Collective Agreement ratified between Xstrata Nickel Sudbury operations and United Steelworkers Workers Local 2020

Sudbury, Ontario - March 2, 2010

Xstrata Nickel is pleased to announce that it has successfully renewed a three-year Collective Agreement with the United Steelworkers Union, Local 2020, representing Xstrata Nickel’s Sudbury office, clerical and technical employees.

Negotiations began in mid-January and the Agreement was ratified by Union membership on Tuesday evening.

Highlights of the Agreement include competitive wage and benefit adjustments, a Continuity Allowance and a revised Nickel Bonus formula. Also included was a new employee incentive program tied to the performance of Sudbury Operations and Xstrata Process Support, the Company’s research and development facility located in Falconbridge.  It also includes a commitment from the Union to work with the Company on addressing pension cost challenges longer term.

Xstrata Nickel’s plans to reactivate copper mining at the Fraser Mine will enable the recall of 12 workers previously affected by the restructuring of Sudbury Operations in 2009.  A six-month transition protocol was agreed to as part of this initiative.

“We are very pleased our office, clerical and technical employees have shown their strong support for the Agreement,” said Marc Boissonneault, Vice-President, Sudbury Operations.  “With the successful conclusion of negotiations with both the United Steelworks Union Local 2020 and our production and maintenance employees represented by the Canadian Auto Workers Sudbury Mine, Mill and Smelter Workers Union Local 598, we will focus on our operation’s future.  This includes the transitioning of Nickel Rim South to full operation, the ramp up production at our Fraser Copper Mine and making enhancements at our Strathcona Mill and Sudbury Smelter to improve the performance of these plants.”

Ends

Xstrata Nickel Contacts

Peter Fuchs, Director Corporate Affairs
Office +1 416 775 1523
Mobile +1 416 305 9273
Email  pfuchs@xstratanickel.ca