MONTREAL, QUEBEC, Jun 4. -- Xstrata Nickel is pleased to announce that it has presented a cheque in the amount of Cdn$7.7 million to the Makivik Corporation, representing its share of the profits generated in 2009 by the Raglan nickel mine operation, located in the Nunavik Territory of Northern Quebec.
To date, more than Cdn$81 million in profit-sharing payments has been directed to an Inuit trust fund for economic and community development through the Raglan Agreement. The comprehensive agreement signed in 1995 by the Raglan operation, Makivik and local Inuit communities supports harmonized relations and fosters opportunities between Xstrata Nickel and local populations in areas such as training, hiring of local businesses and environmental management.
Pita Ataami, President of the Makivik Corporation, said: "Makivik and the Inuit of Nunavik are proud to share the success of Xstrata with the Raglan Mine site. Mining is a key component of our future development and Makivik wants to position itself in a way where we can play a more active role in this industry."
Ian Pearce, Chief Executive Officer of Xstrata Nickel, said: "We are pleased that Raglan can contribute to the development of our local communities. In addition to our profit sharing agreement, programs such as the Tamatumani project provide long-term employment opportunities to significant numbers of Inuit at Raglan. Together, we are building community capacity and delivering economic benefits."
Xstrata Nickel's Raglan mining camp was constructed at a cost of Cdn$600 million and began production in 1997. This year, capital investments include Cdn$167 million for mining development activities, infrastructure maintenance and geology.
The operation consists of three underground and one open pit nickel mines. A fourth mine (Kikialik) is under construction and scheduled to start commercial production in 2012. Raglan also operates a 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 is 30,000 tonnes of nickel-in-concentrate per year.
Xstrata is a global diversified mining group, listed on the London and Swiss Stock Exchanges, with its headquarters in Zug, Switzerland. Xstrata's businesses maintain a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a growing platinum group metals business, additional exposures to gold, cobalt, lead and silver, recycling facilities and a suite of global technology products, many of which are industry leaders. The Group's operations and projects span 19 countries.
Xstrata Nickel, headquartered in Toronto, Canada, is one of Xstrata Group's global commodity businesses. Xstrata Nickel's operations include mines and processing facilities in Canada, the Dominican Republic and Australia, and a refinery in Norway. Xstrata Nickel has a promising portfolio of growth projects in New Caledonia, Tanzania and Brazil. Xstrata Nickel is the world's fifth largest nickel producer, with annual managed production of 88,000 tonnes of refined nickel.
Makivik Corporation is the Inuit owned economic development company created following the signing of the James Bay and Northern Quebec Agreement (JBNQA) in 1975. It has the mandate to represent the 9,800 Inuit of Nunavik at the political level, and to administer the funds of the Agreement accorded to the Inuit ($90-million has been received over a 20 year period). Makivik owns subsidiary companies such as Air Inuit, First Air, Nunavik Arctic Foods, Nunavik Creations, Halutik Fuels, and jointly owns with other Inuit regional corporations Pan Arctic Inuit Logistics (PAIL) and Cruise North Expeditions.