Loss of Xstrata Kidd Metallurgical Operations Will Cost More than 4,400 Jobs, New Study says
February 8, 2010, 11:04 AM EST
The closure of Xstrata's Kidd Mine metallurgical site in Timmins, Ontario could cause the loss of up to 4,428 jobs and $152 million in annual taxes.
This is according to a new study commissioned by the Timmins Economic Development Corporation, conducted by Econometric Research Limited.
In Timmins alone, the direct and indirect job loss arising from the Kidd site are estimated to be 1,162 - which pulls $54.5 million in lost wages, spent in the local community each year.
The story gets worse as the ripple effect is felt across the region. The loss of 4,428 jobs from the supplier, service provider network and others would mean lost wages of approximately $237 million annually.
"Northeastern Ontario cannot afford to lose these good, highly productive jobs," said CAW President Ken Lewenza. "Xstrata must not be permitted to exploit the regions resources and then leave it in dire straits when it's convenient to do so. This is the worst kind of abuse of corporate power and must be stopped."
Last year alone, Northeastern Ontario lost 17,100 jobs, and now has an unemployment rate of 9.1%, up from 5.7% a year earlier.
Earlier today, Xstrata announced a $2.8 billion profit for 2009, defying even analysts' expectations.
Results of the study can be found at: http://www.caw.ca/en/8442.htm
(See 6. We Cannot Afford It)