Vale, Glencore to enter Sudbury merger talks in 2014
Vale trims 25 people from Sudbury operations in face of 'volatile market conditions'
Both Vale and Glencore declined comment to CBC News just a few weeks ago, but now it's confirmed: the mining giants will start formal negotiations in early 2014 to combine some operations in Sudbury.
According to a report from Reuters, Vale indicated it's not seeking full merger, but is looking at an unincorporated joint venture in Sudbury to save money.
According to a report on Bloomberg, preliminary talks with Glencore are going well, with Vale finalizing the studies on different alternatives to combine the assets.
The news comes on the heels of Vale shedding 25 non-union positions in Sudbury.
“In the face of volatile market conditions and operating cost challenges that continue to affect the broader mining sector, we have reduced approximately 25 support and service positions in Sudbury,” Vale stated in a press release.
“These decisions, while difficult, are part of a wider organizational review designed to reduce costs, ensure continued competitiveness and strengthen the sustainability of our operations in Sudbury and around the world.”