Inuit Communities Receive $6.8 Million in Profit-Sharing from Xstrata Nickels Raglan Mine

Inuit Communities Receive $6.8 Million in Profit-Sharing from Xstrata Nickels Raglan Mine

Xstrata Nickel announce that it has presented a cheque in the amount of Cdn$6.8 million to the Makivik Corporation, representing its share of the profits generated in 2008 by the Raglan nickel mine operation, located in the Nunavik Territory of Northern Quebec.

Pita Ataami, President of the Makivik Corporation, said “Once again, this year’s profit sharing will benefit Nunavimmiut with much needed assistance. These payments are appreciated considering that Nunavik has one of the highest costs of living in Canada.”

Yearly profit-sharing is part of the Raglan Agreement, a comprehensive agreement signed in 1995 by the Raglan operation and Makivik and local Inuit communities. The agreement supports the harmonized relations and fostering of opportunities between Xstrata Nickel and local populations and their representatives in areas such as training, hiring of local businesses and environmental management. To date, Raglan has delivered more than Cdn$65.4 million back to the community.

Ian Pearce, Chief Executive Officer of Xstrata Nickel, said “Despite difficult economic conditions, Raglan continues to deliver sustainable ore production at a rate of 1.3 million tonnes annually. Raglan has a world-class deposit that will remain a key asset for our business for many years to come, and we remain committed to sharing our successes with our local communities through the Raglan Agreement.”

Xstrata Nickel’s Raglan mining camp was constructed at a cost of Cdn$600 million and began production in 1997. In 2008, capital investments included Cdn$95 million for mining development activities, infrastructure maintenance and geology.

The operation consists of three underground and one open pit nickel mines, concentrator, accommodation complex, port facilities at Deception Bay and an air strip at Donaldson. The ore from the mine is crushed, ground and treated at the Raglan mill to produce a nickel-copper concentrate. Milling capacity is 3,900 tonnes per day. Nickel capacity at the concentrator now stands at 30,000 tonnes of nickel-in-concentrate per year.

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