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Xstrata temporarily suspends mining in DomRep

Xstrata temporarily suspends mining in DomRep

Anglo-Swiss mining company Xstrata PLC said Tuesday it will suspend operations in the Dominican Republic for four months because of high oil costs and a drop in nickel prices.
Xstrata PLC said the break will allow the company to switch its power source from oil to coal, develop an energy-conversion project and explore new land for mining. No one will be laid off, spokesman Luis Rosado said.
About 90 percent of the 1,800 employees at local subsidiary Falconbridge Dominicana CxA will repair furnaces and perform other maintenance full-time, he said. The remaining 10 percent will remain in administrative positions, he added. The company also employs about 400 contractors.
Officials said the company will continue repairing rural roads and funding other community projects through its nonprofit foundation.
Falconbridge has an annual capacity to mine and process 29,000 metric tons (32,000 tons) of nickel.
CEO Ian Pearce said in a statement that he expects the market to rebound toward year-end.


Updated : 2021-10-21 11:35 GMT+08:00