Miner Sherritt to Cut 10% of Workers, Sell Toronto Office

Sherritt International Corp., a miner of nickel in Madagascar and Cuba, began reducing its salaried workforce following a decline in the metal’s price.

It will cut about 10 percent of salaried employees, excluding those at the Ambatovy mining joint venture in Madagascar, which the company said is its top priority. The move affects 60 people, including 18 in Toronto, said Sean McCaughan, a company spokesman.

Sherritt also started a sales process for non-mining assets including its Toronto office building, it said in its third-quarter earnings statement today. The restructuring is expected to save about C$10 million ($9 million) a year and result in a one-time expense in the fourth quarter of about C$9 million, Sherritt said.

Nickel futures in London have fallen about 16 percent in the past three months after inventories rose. Sherritt’s cost cuts also come after it fended off an attempt in May by activist shareholder Clarke Inc. to appoint three directors to the board. Clarke criticized the miner’s performance and pay policies.

(An earlier version of this story was corrected to show that job cuts affect salaried workers excluding those in Madagascar.)

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