Falconbridge Limited has announced that employees at its Sudbury plant in Canada have voted in favour of a new three-year employment contract.

The signing of the new collective agreement for employees at the main production unit of the world's third-largest nickel producer will provide relief for nickel markets, which have been concerned by the disruption caused by strike action at the Sudbury site.

Falconbridge is also a leading producer of platinum group metals, copper and cobalt.

The strike had paralysed the firm's four mines at the site for the past three weeks and cut smelting capacity in half.

Allen Hayward, vice-president of mining for Falconbridge, explained that a return to work agreement had been finalised for an orderly and safe resumption of operations over the next two weeks.

'We are pleased with the results of the ratification vote and look forward to having our employees back to work as soon as possible,' he stated.

'We believe the new agreement reached is a good balance between the company's need to maintain costs and flexibility in a global marketplace, while providing our employees with a very competitive settlement.'

Production should return to normal operating levels within three to four weeks.