Xstrata to cut 900 workers jobs in DomRep

SANTO DOMINGO, Dominican Republic - Roughly 900 workers at the Dominican Republic's largest nickel mine will lose their jobs due to high production costs and a drop in the metal's value, international mining company Xstrata said Thursday.

Xstrata Nickel CEO Ian Pearce, who is in charge of Anglo-Swiss Xstrata Group's nickel operations worldwide, said about 70 percent of workers at local subsidiary Falconbridge Dominicana, or Falcondo, will be laid off.

In August, the company suspended operations at the Dominican Republic's surface mining operation in Bonao for four months while it tried to switch its power source from oil to coal and develop an energy-conversion project.

"Despite evaluating various alternatives for the Falcondo operation during the temporary suspension of operations, it is not economically viable to restart operations," Pearce said in a statement.

Toronto-based Xstrata Nickel said the remaining employees will perform maintenance, operate a power plant and do reforestation work and other community projects.

Jose Aybar, union secretary for the Falcondo workers, said many employees have already received dismissal notices.

Xstrata Nickel is the world's fourth largest nickel producer.

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