With big questions remaining as to whether work will resume at Vale Inco following labor negotiations, Sudbury miner FNX Mining is in talks with Xstrata Nickel to process its ore at their site.
Currently, FNX has a processing agreement with Vale Inco where weak nickel demand has led to a shutdown until late July 2009.
However, members of the United Steelworkers union voted to strike if negotiations prove fruitless, casting uncertainty over FNX's ability to continue processing there as scheduled.
Located just four kilometres from FNX's mining operations, Xstrata's mill would represent a higher-cost solution to the problem as a result of a short-term milling contract.
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