BHP's Ravensthorpe mine on brink as nickel price falls
SPECULATION is growing that BHP Billiton is about to take a tough decision on the future of its $2.2 billion Ravensthorpe laterite nickel mine in Western Australia.
There are indications that an announcement could be made in the next few days.
The speculation comes against a background of worsening news about nickel, with reports that Japanese customers will defer signing new supply contracts, and predictions that the metal will be in the doldrums throughout this year and into next.
Rumours of the pit closure at Ravensthorpe started circulating last month. Commentators have been comparing Ravensthorpe with the disaster of BHP's hot briquetted iron plant. But as recently as Thursday a spokesman was denying layoffs were planned.
Continued at http://www.theaustralian.news.com.au/story/0,24897,24928826-643,00.html
Or see my posting in the Nickel list
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This is great News for Albidon. The more expensive Nickel extraction methods can't survive with the Nickel price down meaning that world production will ease and so stockpiles will eventually start to fall with an accompanying Nickel price rise. Albidon only needs a Nickel price of a bit over $5 to survive and profit. Nickel isn't the only iron they have in the fire, so if Nickel can tick over and pay its own way then things could turn out very well further down the track :)
Or not - DYOR :)
Robert
ALB Price at posting:
18.0¢ Sentiment: Buy Disclosure: Held
