New FNX and Quadra merger to "strengthen" Sudbury opportunities

The proposed merger between FNX Mining and Quadra Mining Ltd. will bolster opportunities for local suppliers both at home and abroad, according to Vern Baker, vice-president of FNX's Sudbury operations.
Speaking to a packed room of Sudbury Area Mining Supply and Service Association members at the Howard Johnson on Tuesday, April 27, Baker highlighted how the larger company will "strengthen" the company's ability to pursue bigger and better things, even within the Sudbury Basin.
While FNX has a market capitalization of $1.5-billion, the larger company's market capitalization of $3.5-billion will allow for a much more aggressive acquisition of new projects, companies and expansion of its existing mines.
This includes the possibility of tripling production over the next three years, while looking at the potential to bring its new Victoria property into production.
The new company will not take a "global purchaser" approach, but rather will find purchasers from various sites coordinating to solve problems, something that may benefit Sudbury suppliers who assist FNX with specific site solutions, says Baker. This could "get the door open" as FNX could make recommendations on their experience with innovative Sudbury firms, he adds.
In the first quarter of 2010, FNX spent 77 per cent of its contract and supply dollars on local companies, and is projected to spend $85-million through the rest of the year.