FNX Mining Company Inc. (TSX: FNX) ("FNX or the "Company") reports that the Company completed its requirements under the terms of a temporary offtake agreement with Xstrata Nickel and shipped a total of approximately 157,000 tons of ore to Xstrata Nickel's Sudbury processing facilities by the end of August. The ore is stockpiled on surface and is scheduled to be processed by Xstrata Nickel in October (see news release dated August 14, 2009).
Since the beginning of September, FNX has continued its mining operations as planned and has been stockpiling the ore mined on surface at the Company's Podolsky and McCreedy West Mines for future processing at Vale Inco Limited's ("Vale Inco") Sudbury facilities.
The Company has recently been notified by Vale Inco, under the terms of the FNX-Vale Inco Offtake Agreement, to begin delivery of the ore stockpiled since the beginning of September and all future daily production to Vale Inco's Clarabelle Mill. FNX plans to resume ore deliveries from its Sudbury Operations to the Clarabelle Mill shortly. Current plans call for initial deliveries of ore to Vale Inco from an approximately 10,000 ton surface stockpile of crushed and sampled ore to be followed by additional ore deliveries directly from the Company's current operations at the Podolsky and McCreedy West Mines.
Ore shipments to Vale Inco were originally suspended on May 31, 2009, when Vale Inco's Sudbury mines and processing facilities closed for an extended maintenance shutdown. The suspension of ore deliveries was further extended by a labour disruption at Vale Inco's Sudbury Operations, which began July 13, 2009 and continues to the present time.
FNX's Sudbury Operations continue to operate under its original 2009 production plan and cost guidance disclosed in February 2009 (see news release dated February 6, 2009), although the timing of revenue recognition and cash receipts are delayed by the processing interruptions.
Development work on the LFD Deposit and Podolsky Mine continues as planned and remains on schedule.
