Falconbridge Ltd.

Falconbridge Nickel Mines Limited was a Canadian mining and metals company established in 1928 by prospector and businessman Thayer Lindsley. It was created to develop nickel-copper claims in the Sudbury Basin of Ontario, an area that later became central to the economic development of northern Ontario. The company took its name from the Falconbridge township and settlement northeast of Sudbury; the community itself was named after Sir William Glenholme Falconbridge, an Ontario judge. From 1982 onward, the company traded as Falconbridge Limited. The deposits associated with Falconbridge had been identified earlier, including an ore-body discovery attributed to Thomas Edison in the early twentieth century, but commercial development awaited Lindsley's acquisition of the claims. Falconbridge built not only mines but also the infrastructure of a company town, including utilities, medical services and housing. By 1930 it was extracting underground ore and operating a smelter, followed by milling and sintering facilities in 1932. The company's early international expansion came in 1929 through the acquisition of Kristiansand Nikkelraffineringsverk in Norway. That transaction gave Falconbridge access to the Hybinette nickel-refining process and established a long-term refining presence at what became Falconbridge Nikkelverk in Kristiansand. During the 1950s and 1960s, Falconbridge expanded substantially in the Sudbury Basin, developing roughly a dozen additional mines and recovering nickel, copper and platinum-group materials. Its Norwegian refinery began recovering cobalt in 1952. In 1962, the acquisition of Ventures Limited added international operations and geological-exploration capabilities. Falconbridge subsequently broadened its geographic and commodity portfolio. Falcondo, its Dominican Republic nickel operation, began production in 1971. The company also developed or acquired assets in Canada, Latin America, the Caribbean, the United States, Norway and elsewhere, covering mining, smelting, refining, recycling and metal marketing. Technology and environmental management were important parts of the business. Falconbridge patented an internally developed chlorine-leach nickel-refining process in 1977. In the Sudbury region, it joined wider efforts to reduce sulfur-dioxide pollution through improved smelting and a sulfuric-acid plant. Capturing sulfur dioxide for conversion into saleable acid reduced atmospheric emissions while creating an additional commercial product. The original Falconbridge mine reached the end of its commercial reserves in the 1980s, but the company continued operating elsewhere in the Sudbury area and expanded through assets such as the Kidd Mine and Metallurgical Site in Timmins, Raglan in northern Quebec, Montcalm, and later projects and mines in Tanzania and South America. Falconbridge merged with Noranda in June 2005 after Noranda had proposed the combination earlier that year. The enlarged company inherited aluminum, recycling and additional base-metals operations, making it a diversified mining and processing group rather than a solely nickel-focused producer. In 2005, it reported revenue of US$6.9 billion, according to the cited Wikipedia account. The company then became the target of competing takeover proposals from Inco, Xstrata and other mining interests during a period of high base-metals prices. Xstrata, already a substantial shareholder, ultimately prevailed with a cash offer and absorbed Falconbridge in August 2006. Falconbridge's operations continued under the Xstrata Nickel identity, while the legal entity was renamed Xstrata Canada Corporation on 28 October 2007. Xstrata later became part of Glencore in 2013. Although the corporate brand disappeared, Falconbridge remains significant in Sudbury's industrial history. The company was for decades one of the region's largest employers and shaped the surrounding settlement, labor relations, infrastructure and environmental debates. The…

Falconbridge began in 1928 when Thayer Lindsley acquired nickel-copper claims northeast of Sudbury and organized Falconbridge Nickel Mines Limited. The company developed a mine, smelter, mill and sintering plant and constructed a settlement to support employees. Its 1929 purchase of a Norwegian refinery brought the Hybinette nickel process and gave the company an international refining base. Expansion accelerated after the Second World War. Sudbury operations grew through new mines, while the Norwegian business added cobalt recovery. The 1962 purchase of Ventures Limited provided international properties and exploration expertise. Falconbridge then developed operations in the Dominican Republic, Quebec, Ontario, the Caribbean, Latin America and the United States. Its assets eventually included nickel, copper, cobalt, zinc, lead, aluminum, alumina, precious metals and recycling businesses. The company combined mining with processing and technological development. It patented a chlorine-leach nickel-refining process in 1977. In Sudbury, new smelting and sulfuric-acid facilities helped reduce sulfur-dioxide emissions and converted a pollutant into a marketable chemical. The depletion of the original Falconbridge mine in the 1980s did not end the company's regional presence: production shifted to other Sudbury mines, and the group acquired or developed Kidd, Montcalm, Raglan and other operations. Falconbridge merged with Noranda in 2005. The enlarged business inherited aluminum and recycling activities and became the subject of a contested takeover involving Inco, Xstrata and other mining companies. Xstrata completed its acquisition in August 2006. The business continued as Xstrata Nickel, and the legal company name was changed to Xstrata Canada Corporation in October 2007. Xstrata later merged with Glencore in 2013. Falconbridge's social history is closely linked to Sudbury. Its company town became an incorporated community and was eventually absorbed into Greater Sudbury. The company was a major employer, and competition between Falconbridge and Inco influenced local labor politics and community identity. Pollution also affected nearby communities, including Happy Valley, which was abandoned in the 1960s. The former Edison Building was later donated for civic use, preserving a physical reminder of the company's regional role.

1. 2013Xstrata merges with Glencore

   Former Falconbridge assets entered the Glencore group through the Xstrata merger.

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2. 2007Legal name changed to Xstrata Canada Corporation

   The Falconbridge legal identity was formally replaced.

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3. 2006Xstrata takeover completed

   Xstrata acquired and absorbed Falconbridge after a contested bidding process.

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4. 2005Merger with Noranda completed

   Falconbridge and Noranda combined, adding aluminum, recycling and other metals activities.

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5. 1982Company adopts Falconbridge Limited name

   The corporate name changed from Falconbridge Nickel Mines Limited to Falconbridge Limited.

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6. 1977Chlorine-leach process patented

   Falconbridge patented a nickel-refining process developed internally.

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7. 1971Falcondo begins production

   The Dominican Republic nickel mine and processing plant commenced operations.

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8. 1962Ventures Limited acquired

   The transaction broadened Falconbridge's international assets and exploration capabilities.

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9. 1932Milling and sintering added

   A mill and sintering facility expanded the Sudbury processing chain.

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10. 1930Mine and smelter enter operation

    Underground ore extraction and smelting began at the Falconbridge site.

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11. 1929Norwegian refinery acquired

    The acquisition of Kristiansand Nikkelraffineringsverk added refining capacity and rights to the Hybinette process.

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12. 1928Falconbridge Nickel Mines is established

    Thayer Lindsley organized the company to develop nickel-copper claims in the Sudbury area.

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An integrated, internationally active mining and metals group combining exploration, underground and open-pit mining, concentration, smelting, refining, recycling and metal marketing. Its historical identity was rooted in Canadian nickel and copper, while later acquisitions created a diversified base-metals, aluminum and recycling portfolio.

• Sudbury nickel and copperMining and smelting1930

  Falconbridge's historic core was the Sudbury Basin, where it operated underground mines, concentrators, a nickel smelter, sulfuric-acid facilities and a technology center. The operations produced nickel and copper with associated cobalt and platinum-group materials. By 2006, principal mines included Craig, Fraser and Thayer Lindsley, with Nickel Rim South in development.

• Falconbridge NikkelverkNickel refining1929

  The Kristiansand, Norway refining operation originated with Falconbridge's 1929 acquisition of Kristiansand Nikkelraffineringsverk. It became the group's principal nickel-refining site after refining was no longer conducted in Sudbury and also supported cobalt recovery.

• Kidd Mine and Metallurgical SiteCopper-zinc mining and processing

  The Timmins, Ontario complex combined an underground copper-zinc mine with concentration, copper smelting and refining, zinc processing, indium and cadmium plants, and sulfuric-acid facilities. It was one of Falconbridge's major Canadian integrated metals complexes.

• RaglanNickel-copper mining

  Located in Nunavik, northern Quebec, Raglan was an underground nickel-copper mining and milling operation. It represented Falconbridge's expansion beyond the Sudbury Basin and formed part of the company's late twentieth-century growth strategy.

• FalcondoNickel mining and processing1971

  Falcondo was Falconbridge's surface nickel mine and processing plant at Bonao in the Dominican Republic. It began operating in 1971 using a reduction and smelting approach described as an advance over the conventional kiln process. The Falcondo Foundation was established in 1989 for community-development activities.

• Metal recyclingMetal recycling

  Falconbridge operated copper and precious-metals recycling facilities in Canada, the United States and Malaysia. These facilities complemented the group's primary mining and smelting businesses and became more prominent after the Noranda merger.

• Aluminum and aluminaAluminum processing2005

  Following the Noranda combination, Falconbridge included an aluminum smelter in New Madrid, Missouri, an alumina refinery in Gramercy, Louisiana, and rolling mills in Tennessee, North Carolina and Arkansas. These assets made the post-2005 company materially more diversified than its original nickel-mining business.

• 1989Falcondo Foundation

  Dominican Republic

  Falconbridge established the Falcondo Foundation to support community development around its Dominican Republic nickel operation. It was presented as an early example of structured corporate social responsibility in a natural-resource setting.

  Outcome. The foundation continued community-oriented work associated with the Falcondo operation.

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• 2007Rename legal entity as Xstrata Canada CorporationStrategy

  After the acquisition, the Falconbridge corporate structure remained in use for a transitional period.

  What changed. On 28 October 2007, Falconbridge Limited changed its legal name to Xstrata Canada Corporation.

  Aftermath. The Falconbridge name survived mainly as an historical and operational legacy rather than as an independent company.

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• 2006Accept Xstrata acquisitionM&A

  Falconbridge faced competing approaches from Inco, Xstrata and other mining groups during a period of elevated nickel and base-metals prices.

  What changed. Xstrata increased its cash offer to $59 Canadian per share and completed the acquisition in August 2006.

  Aftermath. Falconbridge was absorbed into Xstrata Nickel and ceased to operate as an independent corporate group.

  Reported revenue. US$6.9 billion (2005)

  • Inco — Inco made and later increased a competing offer for Falconbridge.
  • Phelps Dodge — Phelps Dodge proposed a transaction involving a combined Inco-Falconbridge company.
  • Teck Cominco — Teck Cominco pursued Inco during the wider takeover contest.
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• 2005Merge with NorandaM&A

  Noranda was already Falconbridge's majority shareholder and proposed a combination amid changing conditions in the base-metals industry.

  What changed. The companies completed their merger in June 2005 while retaining the Falconbridge name.

  Aftermath. Falconbridge gained aluminum, recycling and additional international operations, but soon became a takeover target.

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• 1977Patent chlorine-leach nickel refiningOther

  Falconbridge sought to improve nickel processing through internally developed hydrometallurgical technology.

  What changed. The company patented a chlorine-leach refining process.

  Aftermath. The patent became part of Falconbridge's record of process innovation.

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• 1960Pollution and abandonment of Happy ValleyControversy

  Pollution associated with the Falconbridge smelter contributed to the abandonment of the nearby Happy Valley community during the 1960s. The episode forms part of the company's environmental legacy in the Sudbury region.

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• 2013Glencore completes merger with Xstrata

  The later owner, Xstrata, merged with Glencore, placing former Falconbridge assets within the Glencore group.

  M&A
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• 2007Falconbridge legal entity renamed Xstrata Canada Corporation

  The remaining legal entity changed its name, ending the Falconbridge corporate name.

  M&AOther
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• 2006Xstrata launches competing Falconbridge offer

  Xstrata, already a major Falconbridge shareholder, made a cash proposal to acquire the company.

  M&A
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• 2006Xstrata increases Falconbridge offer

  Xstrata raised its offer to $59 Canadian per share and subsequently completed the takeover.

  M&APricing
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• 2006Falconbridge absorbed by Xstrata

  Falconbridge was absorbed by Swiss-based Xstrata and continued operationally as Xstrata Nickel.

  M&ALeadership change
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• 2005Noranda proposes merger with Falconbridge

  Noranda proposed combining with Falconbridge; the transaction was completed in June 2005.

  M&A
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• 2005Inco announces bid for Falconbridge

  Inco announced a proposed acquisition valued at approximately $12 billion during a period of strong base-metals prices.

  M&A
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1. Falconbridge Nickel Mines