Falconbridge Nickel Mines
Corporate brand
UnclaimedFalconbridge Nickel Mines was a Canadian mining company that grew from a Sudbury nickel operation into a multinational producer and processor of nickel, copper, cobalt, zinc, aluminum and related metals before being absorbed by Xstrata in 2006.
Last updated August 26, 2026
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Overview
Falconbridge Nickel Mines Limited was a Canadian mining and metals company established in 1928 by prospector and businessman Thayer Lindsley after he acquired nickel-copper claims northeast of Sudbury, Ontario. The enterprise took its name from Falconbridge township, which was itself named for the Ontario judge Sir William Glenholme Falconbridge. Its origins were tied to the development of the Sudbury Basin, one of the world's major sources of nickel and copper, and to the creation of a company town that later became an incorporated community and ultimately part of Greater Sudbury. The company combined mineral exploration, underground and open-pit mining, mineral processing, smelting, refining, recycling and metals marketing. Its principal materials included nickel and copper, with additional production or recovery of cobalt, zinc, lead, aluminum, platinum-group metals, silver, indium and cadmium. Although Sudbury remained central to its identity, Falconbridge developed an international portfolio through acquisitions and new projects. Its operations and interests eventually extended across Canada, Norway, the Caribbean, South America, the United States, Malaysia and Africa. Early growth came through the development of mines, a smelter, a mill and sintering facilities at Falconbridge. In 1929 the company acquired a refinery in Kristiansand, Norway, gaining access to the Hybinette nickel-refining process. This operation, later known as Falconbridge Nikkelverk, became the company's principal nickel-refining center. Expansion during the 1950s and 1960s added numerous Sudbury mines and broader exploration capabilities. The 1962 acquisition of Ventures Limited strengthened Falconbridge's international assets and geological infrastructure. Falconbridge also became associated with metallurgical innovation. It developed and patented a chlorine-leach nickel-refining process in the 1970s and adopted a reduction and smelting method at its Falcondo operation in the Dominican Republic. In Sudbury, the company participated in environmental improvements intended to reduce sulfur dioxide pollution. A more efficient smelter and sulfuric-acid plant captured emissions that had previously contributed to regional ecological damage, while creating a saleable industrial by-product. The original Falconbridge mine was exhausted by 1984, but the company continued through other Sudbury operations and acquisitions. It expanded in northern Ontario with the Kidd Mine and metallurgical complex at Timmins, developed the Raglan nickel-copper operation in Nunavik, and acquired or operated assets such as Montcalm, Falcondo, Lomas Bayas, Altonorte and interests in large copper and zinc mines. The 2005 merger with Noranda broadened its portfolio into aluminum production and electronics recycling. Falconbridge's final independent period was dominated by takeover competition. Inco proposed an acquisition in 2005, while Xstrata and Teck Cominco pursued competing transactions involving Falconbridge and Inco. Xstrata, already a significant shareholder, ultimately prevailed with a higher cash offer and completed the acquisition in August 2006. Falconbridge became part of Xstrata Nickel and ceased to exist as an independent company. In October 2007, the remaining Falconbridge corporate entity changed its name to Xstrata Canada Corporation. Xstrata later merged with Glencore in 2013.
History
Falconbridge Nickel Mines began in 1928 when Thayer Lindsley purchased nickel-copper claims in the area northeast of Sudbury, Ontario. The deposits had been identified decades earlier, including an original discovery associated with Thomas Edison, but commercial development awaited Lindsley's investment. The company established mines, processing facilities and a planned industrial community called Falconbridge. The community later became an incorporated municipality and was eventually incorporated into Greater Sudbury. In 1929 Falconbridge acquired Kristiansand Nikkelraffineringsverk A/S in Norway. The transaction gave the Canadian company a refinery and rights to the Hybinette nickel-refining process. By 1930 underground ore production and a smelter were operating at Falconbridge, followed by a mill and sintering plant in 1932. These facilities established the integrated mining and metallurgical model that remained central to the company. The 1950s and 1960s brought extensive development in the Sudbury Basin. Approximately a dozen new mines were added, producing nickel, copper and smaller quantities of platinum-group metals and other materials. Falconbridge Nikkelverk began recovering cobalt in 1952. In 1962 Falconbridge acquired Ventures Limited, adding international operations and exploration capabilities and helping the company evolve from a regional producer into a multinational mining group. International expansion continued with the opening of the Falcondo nickel mine and processing plant in Bonao, Dominican Republic, in 1971. The operation used a reduction and smelting method that differed from conventional kiln processing. Falconbridge also invested in metallurgical research and patented an internally developed chlorine-leach nickel-refining process in 1977. During the late 1970s, the company worked with Inco on Sudbury-area environmental reclamation. A new smelter and sulfuric-acid plant reduced atmospheric sulfur dioxide emissions by converting them into a commercially usable product. The original Falconbridge mine reached the end of its commercial reserves in 1984, but the wider company continued operating other Sudbury mines. It expanded in Ontario through the acquisition of the Kidd Mine and Kidd Metallurgical Site in Timmins. During the 1990s it developed or acquired operations including a new Sudbury mine and the Raglan nickel-copper mine in northern Quebec. Falconbridge competed unsuccessfully with Inco for the Voisey's Bay deposit. In the early 2000s it added or advanced projects such as Montcalm in Ontario, Kabanga in Tanzania and Lomas Bayas in Chile. By the mid-2000s Falconbridge operated a broad portfolio. Canadian assets included Sudbury mines and processing plants, Kidd's copper-zinc complex, Raglan, Montcalm, several refineries and smelters, and recycling facilities. International activities included the Norwegian nickel refinery, Falcondo, Jamaican bauxite, aluminum operations in the United States, copper assets in Chile and Peru, recycling in Malaysia and exploration interests elsewhere. The 2005 merger with Noranda added aluminum, recycling and other diversified materials businesses. Falconbridge then became the subject of competing takeover proposals. Inco made an acquisition proposal in October 2005, while Xstrata, already a major shareholder, offered to buy the company for cash in 2006. Teck Cominco and Phelps Dodge were involved in related competing transactions concerning Inco and a potential combined company. Xstrata increased its offer and completed the acquisition in August 2006. Falconbridge continued as Xstrata Nickel, based in Toronto, but no longer existed as an independent company. The corporate name was changed to Xstrata Canada Corporation in October 2007. Xstrata later became part of Glencore through their 2013 merger. Falconbridge had a lasting social and economic influence in northern Ontario. The company town became a permanent community, while pollution contributed to the abandonment of nearby Happy Valley in the 1960s. Falconbridge was for many years one of Sudbury's largest employers, second only to Inco, and labor relations and rivalry between the two companies shaped local civic life. In 2007 Xstrata donated the historic Edison Building, formerly Falconbridge's head office, to Greater Sudbury for use as a city archives facility.
- 2013
Xstrata merges with Glencore
[1]The former Falconbridge operations entered the Glencore group through the merger of Xstrata and Glencore.
- 2007
Legal name changes to Xstrata Canada Corporation
[1]The former Falconbridge corporate entity adopted the Xstrata Canada Corporation name.
- 2006
Xstrata acquisition completed
[1]Xstrata acquired Falconbridge after a contested takeover process involving Inco and other mining companies.
- 2005
Falconbridge merges with Noranda
[1]The companies combined in June, creating a broader mining, metals, aluminum and recycling group under the Falconbridge name.
- 1984
Original Falconbridge Mine reserves exhausted
[1]Commercial reserves at the founding mine were exhausted, while production continued at other regional operations.
- 1977
Chlorine-leach process patented
[1]Falconbridge patented a nickel-refining process developed internally.
- 1971
Falcondo begins operation
[1]The Dominican Republic nickel mine and processing plant began production at Bonao.
- 1962
Ventures Limited acquired
[1]Falconbridge acquired Ventures Limited, strengthening its exploration network and international portfolio.
- 1952
Cobalt recovery begins at Nikkelverk
[1]The Kristiansand refinery added cobalt recovery to its nickel-related production.
- 1932
Milling and sintering facilities open
[1]A mill and sintering plant expanded the site's integrated processing capacity.
Products and positioning
A vertically integrated Canadian mining and metals group built around nickel and copper, with a strong Sudbury identity and an increasingly diversified multinational portfolio spanning mining, processing, refining, recycling and metal marketing.
Base metals · 1928
Nickel
Nickel was Falconbridge's defining product and the foundation of its Sudbury, Raglan, Dominican Republic and Norwegian activities. The company combined mining, concentration, smelting and refining, with final nickel refining principally associated with Falconbridge Nikkelverk in Kristiansand.
Base metals · 1928
Copper
Copper was recovered alongside nickel in Sudbury and produced through mines, smelters, refineries and international assets. Falconbridge's later portfolio included copper operations and interests in Chile, Peru and Canada, as well as copper recycling facilities.
Mining and refining by-products · 1952
Cobalt and specialty metals
Cobalt recovery began at the Kristiansand refinery in 1952. Other operations also recovered or processed platinum-group metals, silver, zinc, lead, indium and cadmium, reflecting Falconbridge's effort to extract multiple saleable metals from complex ores.
Aluminum production · 2005
Aluminum
Following the Noranda merger, the group included an aluminum smelter in New Madrid, Missouri, an alumina refinery in Gramercy, Louisiana, and rolling mills in the United States. These assets broadened Falconbridge beyond its traditional nickel and copper focus.
Industrial chemicals · 1970
Sulfuric acid
Falconbridge produced sulfuric acid at Sudbury as part of an emissions-control program. The acid plant converted sulfur dioxide that might otherwise have entered the atmosphere into a commercially saleable chemical.
Marketing campaigns
- 2006Two proud histories, one great future
Canada
This proposed merger slogan framed the possible combination of Inco and Falconbridge as a union of two locally significant Sudbury mining histories.
Outcome. The Inco-Falconbridge combination did not occur; Xstrata acquired Falconbridge instead.
- 1989Falcondo Foundation community-development program
Dominican Republic
Falconbridge established the Falcondo Foundation to support community development around its Dominican Republic nickel operation. The foundation became associated with an early natural-resource corporate-social-responsibility model.
Outcome. The foundation continued as a community-development institution associated with the Falcondo operation.
Brand decisions
2006
Accept Xstrata's takeover offerM&ABackground
Falconbridge faced competing acquisition proposals from Inco and Xstrata during a period of strong base-metal prices and industry consolidation.
Action taken
Xstrata increased its cash offer and completed the acquisition in August 2006.
Aftermath
Falconbridge became Xstrata Nickel and later formed part of Glencore after the 2013 Xstrata-Glencore merger.
2005 revenue. US$6.9 billion (Fiscal year 2005)
- Inco — Inco made a competing acquisition proposal and later increased its offer.
- Teck Cominco — Teck Cominco pursued a related competing transaction involving Inco.
- Phelps Dodge — Phelps Dodge proposed acquiring a combined Inco-Falconbridge company.
2005
Merge with NorandaM&ABackground
Noranda was already Falconbridge's majority owner, and the proposed combination would diversify the business beyond its traditional nickel and copper base.
Action taken
Falconbridge and Noranda merged in June 2005 while retaining the Falconbridge Limited name.
Aftermath
The combined company gained aluminum, recycling and other international materials activities before becoming a takeover target.
1977
Patent chlorine-leach nickel refiningOtherBackground
Falconbridge pursued in-house metallurgical research to improve nickel refining and processing.
Action taken
The company patented a chlorine-leach nickel-refining process.
Aftermath
The patent became part of Falconbridge's record of process innovation.
Sources1 sources
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