the australian article, page-15

And with this I wonder if Xstrata want century or averbury ?

http://www.bloomberg.com/apps/news?pid=20601081&sid=aA21b.blxHKk&refer=australia

Xstrata Extends Nickel Shutdown, Cuts Zinc Production (Update1)
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By Brett Foley and Mark Herlihy

Dec. 4 (Bloomberg) -- Xstrata Plc, the world’s fourth- biggest nickel producer, will extend a shutdown at a plant in the Dominican Republic and cut zinc output at an Australian mine by 20 percent after prices slumped.

About 900 jobs will be lost as the Falcondo nickel plant remains closed, Zug, Switzerland-based Xstrata said today in a statement on its Web site. The company will also cut production at its Macarthur River zinc mine in Australia’s Northern Territory to 2 million metric tons from 2.5 million on slowing demand, spokeswoman Claire Divver said by telephone from London.

The reduction at the Australian facility, expanded from a 1.9 million-ton capacity last year, is equal to an annual output cut of 64,000 tons of so-called concentrate, Divver said. Concentrate is a semi-processed material sent to smelters.

“This move is in response to the weaker demand for the bulk product” made at the Australian plant, Divver said, adding that the bulk concentrate produced contains zinc and lead.

Xstrata is cutting nickel and zinc output as rivals such as Freeport-McMoRan Copper & Gold Inc. slash copper production after prices for the metals slumped. Xstrata and Teck Cominco Ltd. said in July they would close an Australian joint-venture zinc mine earlier than planned. Glencore International AG, a commodity trader and Xstrata’s largest shareholder, last week suspended its Rosaura zinc mine in Peru.

Xstrata fell 61 pence, or 8.8 percent, to 629.5 pence at the close of London trading, taking the year’s drop to 82 percent and valuing the company at 6.4 billion pounds ($9.4 billion).

Nickel Prices

The price of nickel for delivery in three months on the London Metal Exchange has declined 65 percent this year, zinc slipped 52 percent and copper dropped 51 percent. Demand has weakened as economic growth in China, the world’s biggest user of the metals, cools to 9 percent from 11.9 percent last year.

While about 200 contract workers at Macarthur River will be cut, there will be “little impact” on permanent staff, Divver said. About 100 of the contractors have finished expanding the concentrator and converting the underground mine to an open pit, she added. The mine produced 137,750 tons of zinc concentrate last year.

Falcondo, which is 85 percent-owned by Xstrata, comprises a mine and treatment plant. Operations, which began in 1971 and include a crude-oil refinery and 200-megawatt power plant, were suspended Aug. 19. About 30 percent of full-time employees will be retained to maintain the plant, the company said.

“Despite evaluating various alternatives for the Falcondo operation during the temporary suspension of operations, it is not economically viable to restart operations,” Ian Pearce, chief executive officer of Xstrata Nickel, said in the statement.

To contact the reporters on this story: Brett Foley in London at [email protected]; Mark Herlihy in London at [email protected].

Last Updated: December 4, 2008 12:18 EST