Is Sudbury Phelps Dodge city?

• Author: Louiseize, Kelly
• Position: NEWS

So, mother Inco has brought stepfather Phelps Dodge home to meet the children.

The children (community residents, service and supply companies, along with other industry sectors) have grown over 100 years predominantly due to "mother Inco."

Granted the relationship between mother and child has not always been harmonious, but it has always been an intimate relationship, says Northern Ontario Business publisher Patricia Mills. Now there is another parent in the family and the children are scared. Putting facts aside the response to the friendly takeover has been fueled in part by emotion. In Sudbury employers and employees, and perhaps even shareholders, have come to know what to expect over the years from the Sudbury mining houses.

"We are not sure how the rewards will be doled out because of our new step father," Mills says, speaking with Phelps Dodge CEO and chairman J. Steven Whisler.

"Will you treat your new step children the same as your own?" Mills asks.

An estimated $10 million (Cdn) came into Sudbury alone in the last 12 months from Inco and Falconbridge contributions. Although there is no corporate policy on limiting community contributions Phelps Dodge allocates roughly $3.5 million (US) in corporate contributions, and another $2 to $3 million from each operation annually.

The Phelps Dodge Foundation acts as the company's charitable arm and in the last two years a $6 to $8 million (US) injection has brought contributions up to $35 million (US).

"Once we get the three companies combined, one of the things we will do is step back and look at is whether we need to substantially increase that," Whisler says.

Whistler is fully aware of the contributions Inco and Falconbridge have made to this community.

"This is not a new phenomena to us," Whistler says. "We have relationships with communities where we have operated. With up to 7,000 employees here it is very important that those relationships continue to be enhanced and strengthened. It is frankly in our best interest to do exactly that ... it is the right thing to do."

His goal is to make this merger as seamless a transition as possible. The combination of the three companies creates a platform for consolidation, creating a stronger cost competitive company, he says.

With the 125 years of mining experience, "this creates more stability."

Corporate social responsibility means Phelps has taken measures to protect the environment with state-of-the art technology at some of their...