Not talking, say Sherritt and Falconbridge

Speculation that Toronto-based Sherritt Gordon (TSE) and Falconbridge Ltd. are set to embark on a joint venture designed to feed Sherritt’s Alberta nickel refinery have been denied by officials from both companies. They say the rumors are false and no discussions have taken place. Under a new board of directors, however, Sherritt Gordon has approached a number of companies, including Falconbridge, as it bids to fill vacant capacity at the Ft. Saskatchewan refinery.

“In order to get long-term feed we could joint venture with either a major producer or consumer but nothing in that is exclusive to Falconbridge,” said Sherritt Gordon Chairman Ian Delaney.

John Gillies, Falconbridge’s senior vice-president market sales, said he has also heard rumors that were apparently sparked by Sherritt’s aggressive feed buying tactics.

With about 20 million lb. of surplus capacity to fill, Sherritt is disrupting the custom ore market and forcing competitors to overbid for feed, according to a recent edition of New York-based Metals Week. Falconbridge is owned jointly by Toronto-based Noranda (TSE) and Trelleborg of Sweden which in turn are thought to own 9% of Sherritt.

Ontario securities guidelines don’t require companies to disclose their investments until they have acquired 10% of a specific company. Delaney said he is unaware of any investment by either Noranda or Trelleborg in his company.