Forward trends continue for FNX Mining.

Some of the most promising chapters in the story of FNX Mining Company Inc. have yet to be written, as the company's strong standard of growth is slated to continue well into the future, according to its senior vice-president and COO.

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In an address to the NORCAT / Northern Ontario Business Opportunity Series Breakfast (NNOS), Tony Makuch told a packed crowd at the Fontaine Bleue, in Sudbury's Cambrian College, that FNX expects its current 25 per cent annual growth rate to hold, as it explores and develops more Sudbury-area property holdings.

Production at the company's McCreedy West mine is expected to increase from 2,000 tons per day to a potential 2,500 tons per day in 2007, while the Levack Mine is set to bring an additional 1,500 tons per day as its rolls into full production this year. Combined with the eventual production of the Podol-sky mine and the Levack Footwall deposit, FNX is slated to see an additional 4,500 tons per day by no later than 2009, Makuch says.

"You could have bought a share at 23 cents in 2001, and it's worth $18 dollars today, which is not a bad return on investment," he says.

"That's 100 per cent from the work we've done here in Sudbury, and it just goes to show you what's available here."

The company expects to ship a total of 900,000 tons of ore in 2007, as compared to the 2006 total of 635,000 tons, Makuch says. Approximately 13 million pounds of nickel and 12 million pounds of copper are also expected to be produced, representing an improvement over the 8.1 million pounds of nickel and 9.7 million pounds of copper produced in 2006.

At the company's current rate of growth and exploration, Makuch says the company expects to be able to boost those numbers to 24 million pounds of nickel and 100 million pounds of copper per year by 2010.

As a sign of the company's long-term commitment to the region, Makuch says FNX is looking to spend virtually all of its $173 million capital expenditure and exploration budget for 2007, in the Sudbury area, a figure he hopes will eventually ramp up to $300 million per year. As a further example, he estimates the company will look to boost its local workforce of 550 employees to 1,000 by 2010.

As time goes on, the company may well explore beyond the Sudbury Basin, but will always keep its eye squarely on the holdings that have driven its success, says Makuch.

"As the company grows, there is potential to examine other opportunities in other parts of Canada. We would look, but we never want to lose our focus on the Sudbury camp."

The event represented not only a chance for local supply and service businesses to hear an update on FNX's progress, but also to meet and network with one another.

"We wanted the opportunity to help local businesses and suppliers connect, and it's certainly paying off," says Patricia Mills, publisher of Northern Ontario Business. Darryl Lake, CEO of NORCAT, agreed, adding that the event's greatest strength is its ability to encourage companies to become more aware of one another and to strike up partnerships.

"The most important part of this is to bring the group together," says Lake. "There were probably two or three deals that happened at each table today. It's important to have a focal point, with a focal speaker, but the real product is the networking, so as part of our mandate, it's fundamentally important."

The next NNOS Breakfast is slated for Tuesday, March 13,2007.

www.norcat.org

www.northernontariobusiness.com

www.fnxmining.com

By NICK STEWART

Northern Ontario Business