First Nickel reduces workforce by 45% at Sudbury mine

First Nickelsays its Lockerby Mine in Sudbury is being restructured to reduce costs, increase exploration and extend the life of the mine.

The number of contractor positions havebeen reduced from 80 to 20 and 48 layoff notices have been given to the mine's unionized employees.

Cost reductions and productivity changes require a 30% reduction in FNI personnel, and a 75% reduction in third-party contractor personnel, for an overall workforce reduction of 45%.- First Nickel press release

Those two sets of cuts will result in an "overall workforce reduction of 45 per cent,"the company stated in a news release Monday.

A total of 115 jobs will remain.

The vice-president of Sudbury operations said changes need to be made to extend the life of the mine.

Vern Baker said the company needs to "adapt our cost structure and that will allow us to not only access deeper ore by continuing our ramp development down into that ore [it will] alsoallow us to do exploration drilling,which would, we believe ... allow us to open up some additional ore and continue to mine even longer.

The local president of Unifor said steps are being taken to minimize the impact on workers.

Anne-Marie MacInnis said the company is offering voluntary early-retirement incentive programs.

So that means if theres some folks that do take that the reduction wont be so deep, she said.

The nickel and copper mine is located southwest of Sudbury.

In the Monday news releaseThomas M. Boehlert, president and CEO of First Nickel said "we are implementing a plan that will see production continue through 2016, preserve 115 FNI jobs, restart and expand our exploration drilling program and potentially add to mine life.The Lockerby team has successfully met past challenges and I am confident in their ability to execute on the restructuring plan, ensuring that the mine will be viable going forward."

Costs at the Toronto corporate office are also being reduced as part of First Nickel's restructuring plan.