David Zylberberg
From at least 1929, the Nickel Belt region around Sudbury was the main operation of two large and generally successful mining companies, INCO and Falconbridge. Although there were a number of labour disputes, periodic layoffs and major expansions, the situation largely continued until the commodity boom of the mid 2000s. There was a spate of acquisitions and mergers in the international mining sector and the world’s second and third largest nickel companies received global interest. In 2006, Falconbridge was acquired by a Swiss Company, XSTRATA, while INCO became part of Brazilian VALE in a $19 billion dollar sale. Since these both involved the sale of Canadian companies to foreign investors, they fell under the regulation of the Investment Canada Act, which states that such takeovers must be a net benefit to Canada. The recently elected Harper government agreed to both sales with a list of conditions that have never been made public, although it is widely understood that both companies promised not to layoff any Canadian employees for 3 years.