Cambior closes Sequoia acquisition (July 05, 2004)

Cambior (CBJ-T) has inked workers at the Niobec niobium mine in St-Honore, Que., to a new four-year collective agreement.

The deal includes wage increases of about 10% over its lifetime for hourly, clerical and technical employees. The new deal is retroactive to May 1, 2004, and also includes improvements to several benefits.

The new labour pact comes with the ink just drying on Cambior’s acquisition of Sequoia Minerals. That deal saw Cambior offer Sequoia shareholders the option of 60 for each of their shares or one of its own shares for every 6.3 Sequoia shares. In the end, Cambior paid $55.2 million in cash and issued some 2.2 million shares to make Sequoia it’s wholly owned subsidiary and consolidate ownership of Niobec, in which Sequoia owns a half-interest.

Niobec is North America’s sole niobium producer and the world’s third largest. In 2003 the operation turned out sales of US$44.4 million.