Falconbridge grows despite production snags at Sudbury

Production problems at the Sudbury operations of Falconbridge (TSE) have not impaired the company’s year-over-year increases in earnings and revenues.

Earnings for the second quarter amounted to $72.3 million, or 41 cents a share, on revenues of $574 million, compared with $2 million, or 2 cents per share on $449.6 million for the same period in 1994.

The increased earnings were largely attributed to higher U.S. dollar metal-prices and higher precious metal revenues from the Integrated Nickel Operations.

For the first 6-month period in 1995, the company earned $168.8 million, or 96 cents a share, on revenues of $1.2 billion, compared with a loss of $5.6 million, or 5 cents a share, on revenues of $870.4 million for the same period in the previous year.

Problems with the matte tap holes in the electric furnaces lowered production in Sudbury. The problem was corrected in June during the annual maintenance shutdown.

Custom mill feed suppliers could not make up the shortfall from the Sudbury operations, and this resulted in a production level below capacity at the nickel refinery in Norway.

However, nickel production for the second half of 1995 is expected to exceed normal levels. This increase is attributed to the commissioning of the Craig mine shaft, as well as further development of the Lindsay and Lockerby mines, all of which are in the Sudbury area.

Meanwhile, in northern Quebec, the company received final approval for development of the Raglan nickel project. With all permits in hand, the company has begun construction at the site.