xstrata suspending ni prodn due to low ni pric

If prices stay down or even fall further we will see more plants shut down. All good for Ni Sulphide miners and low cost miners.


Ferro nickel mine ops suspended by Xstrata due to poor markets
Xstrata is suspending production at its Falconbridge Dominicana operations due to poor market conditions but using the shutdown to implement crucial maintenance and undertake studies on changing from oil hungry power inputs.

Posted: Tuesday , 19 Aug 2008

LONDON (Reuters) -

Swiss-based miner Xstrata Plc said on Tuesday it was suspending operations at its Falcondo ferronickel mining operation in the Dominican Republic, as a result of market conditions.

"This is due to a combination of extremely high oil prices, which represent the majority of the site's costs, and lower nickel prices," Xstrata said in a statement.

The shutdown is anticipated to last four months, during which time furnace repairs and crucial maintenance activities will be conducted, the company said.

"The resumption of activities will be assessed based on market conditions, which are expected to improve towards the end of 2008," Ian Pearce, chief executive of Xstrata Nickel, said.

"The suspension will also enable the acceleration of feasibility studies into the energy conversion project, to switch the operation's power source from oil to coal, and the development of the Loma Miranda project, which will provide a new higher-grade mining area for Falcondo and extend the mine life," Xstrata said. (Reporting by Dan Lalor; editing by Sue Thomas)