FNX takes its expertise into contract mining

No doubt hoping to repeat its success in developing (or, in truth, redeveloping) mines in Canada’s Sudbury region, FNX Mining has exercised its right to purchase from Sherritt International the Dynatec Mining Services Business for C$53 million, including working capital. Concurrent with the exercise of the right, FNX entered into a definitive agreement with Sherritt to acquire the Dynatec Mining Services Business comprised of the Canadian Mining Services Division and Dynatec Mining Corp, which provides mining services in the USA.

An expansion of activities outside of North America may be considered judging by the comments of John Lill, President and Chief Executive Officer of FNX. “We are very pleased to have exercised our right to acquire the Mining Services Business and plan to not only maintain the business as one of North America’s premier mining contractors, but also pursue new contracting opportunities. This acquisition also provides FNX with a pool of highly skilled and experienced supervisory, mining and technical employees to support FNX’s ambitious growth plans at our Sudbury operations and also adds the capability to become joint venture partners/mining operators in select mining development projects.”

The acquisition is expected to close in late-October, following satisfaction of customary closing conditions. Sherritt originally acquired Dynatec’s Mining Services Business in connection with its acquisition of Dynatec Corporation completed in June 2007.