Toledo Mining slashes nickel output, cuts jobs
Sponsored Links
responded to falling nickel prices by slashing production of the metal at its
In the quarter to December 31, only 16,279 tonnes of ore was mined, compared with 345,005 tonnes over the third quarter.
Toledo said production had temporarily ceased at Berong, with the loss of more than 600 jobs.
“Production was reduced in response to the increasing stock levels, deteriorating markets and onset of the non-shipping window,” Toledo said, adding that rough sea conditions make shipping ore difficult between October and February.
The company added that demand for the main source of nickel, laterite ore, from China, the principal driver of the nickel market, is expected to remain depressed in 2009. It said that anecdotal evidence suggests more than 8m tonnes of laterite ore is stockpiled at Chinese ports.
However, Toledo said it was to an extent insulated from the current turmoil in the nickel markets, helped by previous agreements to supply the metal to mining giant BHP Billiton (LSE: BLT.L – news) up to 2013. It added that it was selling nickel at London Metal Exchange prices, without the heavy discounting seen elsewhere in the market.
Related posts:
- European Nickel Completes Acquisition
European Nickel PLC (”European Nickel” or the “Company”) (AIM: ENK) is pleased to announce, further to its announcement of 2... - LME nickel price jumps by 6%
Reuters reported that nickel prices on London Metal Exchange surged by 6% after BHP Billiton said it would close a... - Metalloinvest slashes iron ore output, retain steel output levels
Metalloinvest, Russia’s largest iron ore miner, has slashed output of the steel making raw material as clients have fallen over...
Comments
Leave a Reply
