Reuters reported that Quadra FNX Mining may seek JVs or agreements with Vale and Xstrata to mine small sized deposits in the mineral rich Sudbury of Ontario.

Speaking just two weeks after the company was created by the merger of Quadra Mining and FNX Mining, Mr Paul Blythe CEO of Quadra FNX Mining said that it would be eager to lend its expertise in mining small ore bodies to its neighbors.

Vale and Xstrata entered the Sudbury nickel camp in 2006 when they bought Canada's Inco and Falconbridge, respectively. However, the drop in metal prices since then has highlighted the dwindling supply of large scale deposits and the high costs needed to develop new mines in the area, which has been mined for over a century.

FNX originally got into Sudbury by buying up former Inco mines nearly 10 years ago. It has since reopened two old properties and developed two new ones, pursuing smaller, high grade copper deposits that Inco bypassed in its pursuit of nickel.

Mr Blythe said that "I don't think Xstrata or Vale is currently entirely happy with their positions in the camp. I'm hopeful that we can help them with the skills that we've got. Certainly the first priority is starting a dialogue with them."

He didn't elaborate on what type of deals were likely, but Quadra FNX spokesman David Constable said joint ventures were a possibility, while another option would be Quadra FNX contracting to do mine work for Vale or Xstrata.

(Sourced from www.reuters.com)