Platinum group metal producer Falconbridge has confirmed that it will be amalgamating with Noranda, a leading copper and nickel company.

The two firms will begin operating under the name Falconbridge if shareholders grant their approval, potentially establishing one of the US' biggest metals firms. Together the two firms would boast assets of around $12 billion.

The firms also said in a joint statement that they believe the new arrangement would provide flexibility, financial backing and greater operational strength.

"We look forward to completing the amalgamation of the two companies," commented Noranda chief executive Derek Pannell.

Falconbridge president Aaron Regent agreed, commenting: "With an attractive pipeline of projects, expanded operations and a simplified corporate structure, we believe that the combined company will be well positioned to benefit from current market conditions and the positive long-term outlook for the metals business."

Nickel and pgm producer Falconbridge posted record earnings for 2004 earlier this year, with earnings of $194 million for the fourth quarter.

Falconbridge is currently working on the underground definition project at Nickel Rim South, which it says is progressing on schedule and within budget.

The latest inferred mineral resource estimate suggests there are 13.4 million tonnes of 1.8 per cent nickel, 3.3 per cent copper and significant palladium and platinum resources.