Xstrata Copper Canada says it will shut down its copper and zinc metallurgical plants at the Kidd Metallurgical site in Timmins, Ontario, on 1 May 2010 as part of its Canadian metallurgical restructuring.
The company said the closure will help improve the financial performance of its assets in the face of global smelting overcapacity and refining charges.
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The Kidd mine and concentrator will remain in operation, the company said.
About $375m is expected in exceptional closure-related costs and asset impairment charges, which will be reflected in Xstrata’s 2009 financial statements following the shutdown.
The remaining Kidd assets will be integrated with the smelting and refining assets of Xstrata’s Horne smelter and CCR refinery to improve the Canadian division’s competitiveness and balance concentrate supply with smelting and refining capacity in the region.
Xstrata CEO Mick Davis said that non-cash charges at Kidd are due to the shutdown of Kidd copper and zinc plants and believes that the custom smelting market will remain challenging going forward.
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