Xstrata lays off 680 staff due to 'challenging market conditions'

Several mines and mills in Canada are either closing or running at lower capacity - a response to dwindling demand as the economy shrinks.

Xstrata says the downsizing will lead to "more robust and viable operations" at Sudbury in the long term.

The company says it remains committed to Sudbury, with the Nickel Rim South project "a top priority".

Xstrata Nickel chief executive Ian Pearce said: "Our leadership team is taking proactive and decisive measures during challenging times."