BY TRACEY DUGUAY
“No comment” was the only comment from Mike Romaniuk, vice-president of Xstrata Nickel’s Sudbury Operations, about rumours of a mining merger.
Romaniuk attended a city council meeting Wednesday night to give the municipal representatives an update on the mining company; however, neither he nor members of council acknowledged the one-tonne elephant sitting in the room.
With rumours of a possible merger between Xstrata and Vale Inco circulating all week, city council let question period come and go without even bringing the subject up.
Based on Romaniuk’s response to the media when the question was raised later, it probably wouldn’t have mattered anyways. After refusing to comment on the matter, he then said he’d leave the speculation up to the media.
Focusing instead on the company’s bright future, Romaniuk told council Xstrata is on track for record output at the Sudbury smelter with over 67,000 tonnes in nickel matte.
It is also continuing to develop both the Fraser Morgan and Nickel Rim South projects, with a $412 million (U.S.) investment already in the Sudbury Nickel Rim South Project.
The company will continue to put $200 (U.S.) million into the project for the next two years, with the expectation of full development by 2010.
Romaniuk also highlighted Xstrata’s investment in the community, giving credit to Greater Sudbury Mayor John Rodriguez for helping him “focus” on what projects the company should spend its money on.
“Our previous owners were generous, Xstrata is even more generous,” he said.
These investments include: $5 million to the Centre for Excellence in Mining Innovation; more than $1.5 million in multi-year investments in the hospice, Dynamic Earth and Sudbury Community Foundation; $2 million to Sustainable Energy Centre at Cambrian College; and $2 plus million dedicated to a community investment program planned for 2008.
With around 2,000 employees spread out across Sudbury Basin projects, Romaniuk said Xtrata would be looking to hire 400 more over the next year.
But this could get tough, he said, as more young people are heading for the oil sands in Alberta. The biggest challenge for the mining company is recruiting people to work in the technical and engineering field.
Another growing concern, he added, is employees are complaining about the skyrocketing housing market.
“A lot of people are saying the cost of living is out of control,” Romaniuk said. “They can’t afford a house."
