💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

No end in sight for strike at Noranda Quebec zinc plant

Published 2017-03-08, 03:23 p/m
© Reuters.  No end in sight for strike at Noranda Quebec zinc plant
GLEN
-
NIF_u
-

By Nicole Mordant

March 8 (Reuters) - A 3-1/2-week strike at Noranda Income Fund's NIF_u.TO zinc processing facility in Quebec is showing no signs of ending, union officials said on Wednesday, with no talks set between workers and management.

The two sides met with a Quebec government-appointed mediator last Friday but no progress was made in settling a dispute over pension cuts and no further meetings arranged, United Steelworkers of America Local 6486 President Manon Castonguay said.

"The company is staying in its position and so are we," he said in an interview.

The Friday meeting was the only time the two sides had met since the strike began on Feb. 12, she said.

Officials at the Noranda Income Fund as well as Glencore Canada GLEN.L , which indirectly owns 25 percent of the fund, did not respond to a request for comment.

The market is keeping a close eye on the strike as zinc prices have more than doubled since the beginning of last year due to a shortage tied to mine closures and shutdowns. The price of zinc CMZN3 gained 0.6 percent to $2,710 a tonne on Wednesday.

At the same time, spot treatment charges, which zinc smelters are paid for processing and refining concentrate, are near historic lows.

The plant, located at Salaberry-de-Valleyfield in Quebec, is the biggest zinc processing facility in eastern North America.

Noranda said last week that the processing facility had resumed partial production but did not give details. said the plant was likely producing at less than 25 percent of normal capacity.

The plant's 371 unionized workers walked off the job after the two sides could not agree on proposed pension plan changes in a new collective bargaining agreement. The previous agreement expired on Nov. 30.

Noranda units were up 1 Canadian cent at C$1.57 on the Toronto Stock Exchange on Wednesday afternoon. Year-to-date, the units have lost 34 percent of their value.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.