Ottawa won't take action over Vale's Sudbury cuts

Tue Jun 9, 2009 4:29pm EDT
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OTTAWA (Reuters) - Canada will not take any action against Brazilian miner Vale over cutbacks at its Sudbury mining operations, Industry Minister Tony Clement said on Tuesday.

Vale announced in March it would cut 423 jobs at its Canadian operations and shut its Sudbury, Ontario, facilities for eight weeks, sparking questions from Clement over whether the company was violating agreements it signed when it bought Canadian nickel miner Inco in 2006.

"One of the things I look for is is there an equality of pain around the world in these international enterprises," Clement told reporters in Parliament.

"And judging from the shutdowns, in Brazil for instance, and other parts of the world, it seems that they haven't targeted Canada or targeted Sudbury for their shutdowns. So that's obviously something in their favor, so at this point we're not going to be proceeding with any actions with respect to Vale Inco."

(Reporting by Randall Palmer and Cameron French; editing by Rob Wilson)