Reuters reported that FNX Mining is considering restarting dormant nickel production and seeking acquisitions, but both plans are contingent on Brazilian miner Vale resolving a 7 month old strike at its Sudbury operations.

It may be noted that FNX Mining suspended nickel production in late 2008 due to plunging prices, focusing instead on copper and precious metal output.

Mr Terry MacGibbon CEO of FNX Mining said that the big remaining barrier to a restart is the strike at Vale. He added that "The long term price is an issue, but the availability of shipping it over to Vale Inco and their being able to handle it is really the key."

Vale, who took over the Sudbury assets of Inco when it bought the Canadian miner in 2006, has partially restarted the northern Ontario operations using non union workers, but is not yet ready to take FNX nickel ore.

Mr MacGibbon's comments come as Vale prepares to hold exploratory talks with the United Steelworkers union this weekend, the first meeting between the two sides since the strike began last July.

Mr MacGibbon said that FNX is once again looking for acquisition opportunities and would be keen to add more castoff assets in the Sudbury basin, where mining is dominated by Vale and Xstrata, which bought Canada's Falconbridge in 2006. He added that "There are no 'for sale' signs up anywhere, but we think with our cost structure and our way to operate that we might be able to become involved in some of the deposits in Sudbury. Once all of the labor disputes and the different distractions in Sudbury are over, we can address that."

(Sourced from www.reuters.com)