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Late on Friday, Reuters reported that Glencore Xstrata plc (LSE:GLEN) and Vale SA (NYSE:VALE) are once again talking about combining their nickel mining operations in Canada’s Sudbury Basin. Cost cutting is one reason they are considering the move.
Late last Friday, Reuters reported that Glencore Xstrata plc (LSE:GLEN) and Vale SA (NYSE:VALE) are once again talking about combining their nickel mining operations in Canada’s Sudbury Basin. Cost cutting is one reason they are considering the move.
As quoted in the market news:
The discussions are still at an early stage but have revived hopes of a long-debated Sudbury tie-up, with the companies considering a number of options for their mining and processing operations in the area, the sources said.
Depending on the details of a potential deal, several of the sources said a tie-up could mean substantial savings for both mining heavyweights, if all or part of their mining, milling and even smelting operations are brought together.