Xstrata Building Recycling Plant

Xstrata Nickel started construction of a new recycling plant at its Sudbury, Ontario, smelter. When complete, it will more than double the smelter’s existing recycling capacity. The cost of the project is around C$21.4 million (US$19.4 million).

When fully operational, Xstrata Nickel will become a market leader in cobalt and nickel recycling.

"In alignment with Xstrata Nickel’s focus on growth, this expansion gives us the capacity to profitably take in a wide variety of feedstock, which represents a distinct competitive advantage in today’s metal recycling market," said Mike Romaniuk, vice president Sudbury Operations. "Demand for cobalt and nickel recycling has significantly increased in recent years due to high metal prices and rapid technological advances, and we will now be better able to meet this customer need."

Xstrata Nickel has received all necessary environmental permits following a detailed engineering and pilot-testing phase completed mid-June 2006. Commissioning of the new plant, which will be operated and maintained by the commodity business unit’s current Sudbury employees, is scheduled for July 2007.

The Sudbury smelter has been actively recycling cobalt- and nickel-bearing materials since 1981. The operation treats and processes feed from worldwide sources.