Late last Friday, Reuters reported that Glencore Xstrata plc (LSE:GLEN) and Vale SA (NYSE:VALE) are once again talking about combining their nickel mining operations in Canada’s Sudbury Basin. Cost cutting is one reason they are considering the move.
As quoted in the market news:
The discussions are still at an early stage but have revived hopes of a long-debated Sudbury tie-up, with the companies considering a number of options for their mining and processing operations in the area, the sources said.
Depending on the details of a potential deal, several of the sources said a tie-up could mean substantial savings for both mining heavyweights, if all or part of their mining, milling and even smelting operations are brought together.