Inco (N-T) and members of the United Steelworkers of America have reached a tentative deal at the nickel miner’s processing facilities in Thompson, Manitoba.
Details of the settlement will not be made public until the agreement is put to a ratification vote this weekend.
Inco figures vote results will be in by Sunday evening.
During the last contract talks in 1999, talks broke down and workers were locked out for 12 weeks. The sticking points then were pensions and wages. The lockout resulted in a US$12-million after-tax expense.
The existing three-year deal is set to expire on Sept. 15.
Inco’s 145,000-tonne-per-year nickel plant at Thompson employs about 1,400 people; the union represents around 1,000 of them. The operation churns out more than 45,000 tonnes of nickel annually.
Meanwhile in New Caledonia, Inco has halted work at its US$1,4-billion Goro nickel project after minor demonstrations by several local contractors and suppliers, reports Reuters. Inco says the disruption shouldn’t affect the project’s 2004 startup date.
On the financial front, Inco has filed to sell US$300 million of debentures due 2032 in the U.S. The offer and sale of the debentures is being made pursuant to the Multijurisdictional Disclosure System in the U.S., and is subject to regulatory approvals and certain conditions in the underwriting agreement.
Merrill Lynch & Co. will act as book-running, co-lead manager; Salomon Smith Barney is the other co-lead manager. Credit Suisse First Boston and Morgan Stanley are the other co-managers.
Inco plans to use the US$296 million in net proceeds to fund existing operations and for general corporate purposes, which may include the purchase or redemption of its outstanding securities (excluding common shares).
Inco said a registration statement relating to the debentures has been filed with the U.S. Securities and Exchange Commission, but has not yet become effective.
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