Xstrata Nickel plans to restructure its Sudbury, Ontario, Canada operations in response to ongoing challenging market conditions. The restructuring followed an announcement in November 2008 of the accelerated closure of the end-of-life Craig and Thayer-Lindsley operations at Sudbury, both of which will cease operations with immediate effect. As a result of the restructuring, the Fraser Mine Complex would be placed on care and maintenance, and associated support and administrative functions would be reorganized. The Strathcona Mill, with a capacity of 2.7 million metric tns/year of ore, would be reduced to two work shifts from four as a result of reduced feedstock. Total production from the Sudbury Smelter was expected to remain steady from 2008 as shortfalls arising from the cessation of Sudbury Mines would be offset by concentrates from Nickel Rim South and Xstrata Nickel Australasia. Xstrata’s Fraser Morgan development project is being deferred. However the Nickel Rim South project remains on schedule to ramp up to 60% of its ultimate 1.25 million metric tns/year production capacity in 2009, equivalent to approximately 7400 metric tons of nickel. Nickel Rim South would become a low-cost, cornerstone operation in Sudbury, generating annual production of about 18,000 metric tons of recoverable nickel by early 2010.