Quadra FNX Mining Ltd. is pleased to announce that it has signed a new 38 month collective labour agreement at its Franke Mine in Chile. The agreement includes a wage increase and standard industry benefits that overall represents a labour cost increase of approximately 6.5% over the life of the contract, plus Chilean standard cost of living increases.
As previously announced, the Franke operation continues to progress with the transition to owner mining which is expected to improve operating efficiencies, and in turn have a positive impact on the mine’s cost structure. In addition, Quadra FNX is also increasing its exploration efforts at Franke and the nearby Pelusa property. Drilling of the nearby China oxide deposit has commenced, while a regional exploration program on Pelusa is planned for the second half of 2011.
The Franke Mine is expected to contribute 35-45 million pounds of copper in 2011.