Thursday, March 12, 2009

First Nickel To Re-Open Lockerby Plant

Canadian company First Nickel is to restore the Lockerby nickel mine in the Sudbury basin in northern Ontario within two years as it expects that nickel prices may rise above $7 per pound. The company also said nickel prices during 2011-2015 may increase to $10 per ton. The restoration costs of Lockerby may be about $54.2 million.

As prices of basic metals plunged as a whole, First Nickel had decided to suspend nickel production last October. Nickel ore produced by Lockerby will all be sold to Xstrata's Strathcona plant.

Most nickel enterprises chose to suspend nickel production on account of low prices. FNX Mining Company also suspended part of its nickel ore production. Insiders predicted Valeinco's nickel mine in Sudbury, Canada will also face production suspension. First Nickel expressed currently many enterprises are in deficit and a large amount of nickel projects are laid idle.

Source: Alibaba News Channel

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