Strategy and Organization
Falconbridge's business development team is responsible for mergers, acquisitions and divestitures. The primary focus is on the growth of the nickel and copper businesses of the Company, through the acquisition of world-class copper and nickel deposits, with a secondary focus on zinc and aluminum. The business development team's activities, together with those of the exploration team, have resulted in an outstanding pipeline of high-return brownfield and large-scale greenfield project opportunities.
Of Falconbridge's new initiatives, the team has been responsible for or involved in:
- The successful development of the Antamina mine with BHP Billiton, Teck Cominco and Mitsubishi
- The acquisition of Lomas Bayas
- The acquisition of the El Pachón project
- The Lennard Shelf joint venture with Teck Cominco
- The Kabanga joint venture with Barrick
- The St. Ann Bauxite mine and Gramercy Alumina refinery with Century Aluminum Company
- Recycling of end-of-life electronics components with Hewlett-Packard
- Long-term processing agreements with Agnico-Eagle and Inco
- Noranda Income Fund (CEZ)
These projects illustrate the range of initiatives that are designed to add shareholder value or growth in the Company's prime commodities at a competitive cost. They also highlight Falconbridge's role as a key partner with other companies.
Activities
The work of the business development team includes:
- Evaluating potential acquisitions of mining properties or producing assets
- Investing in junior mining companies
- Partnering with other companies to develop growth opportunities
- Developing long-term strategic, commercial relationships
- Examining potential brownfield expansions within the Company's existing asset base
- Identifying internal opportunities through creating linkages
As well as acquisitions and partnerships, the team is responsible for divestitures designed to increase shareholder value and deliver profitable growth. Recent activity includes:
- Sale of Duck Pond base metals deposit to Aur Resources Inc. (2002)
- Sale of Lockerby nickel deposit in Sudbury, Ontario to First Nickel Inc. (2005)
- Sale of interest in the Minto copper deposit to Sherwood Mining Corporation (2000)
- Sale of Morrison porphyry copper-gold deposit to Pacific Booker Minerals Inc. (2004)
- Sale of American Racing Equipment Inc. to Platinum Equity (2005)
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