Consolidation for Sudbury mining camp?

• Position: MINING

International miners Glencore Xstrata and Vale have restarted discussions over a possible combination of the two companies operating in the Sudbury basin, according to a Reuters report.

Citing internal sources, Reuters reported the companies seek to reduce costs as commodity prices for base metals decline.

Talks are described as being at an early stage but it revives hope of a consolidated camp, something not talked about since the 2005-2006 takeover of Inco by Vale and Falconbridge by Xstrata.

Xstrata has since been acquired by Glencore.

Reuters' sources said talks began after Glencore finished its acquistion of Xstrata earlier this year and have continued as nickel prices have dropped...