| The TEX Report Topics < Ferro Alloys > | |
| HOME >> Topics List >> August, 2008 >> 21 (Thu) |
| Xstrata Suspends Operations At Bonao Nickel Mine For 4 Months |
| = Owing To Higher Oil Price and Lower Nickel Price, Nickel Production Is Adjusted |
|
Xstrata Nickel announced on the 19th of August that Falcondo, a subsidiary of Xstrata in Dominicana, has suspended to operate the Bonao nickel mine for the time being. According to this announcement, the above suspension is due to higher oil price and lower nickel price and, in order to supply raw material with high grade nickel ore and to change the energy to generate electric power from oil to coal, it will take 4 months. For a reference, this mine has the capacity to produce 29,000 tons per annum of nickel in ferro-nickel. In order to reduce an influence on production cost caused by higher oil price, Falcondo has already arranged various countermeasures and resulted in saving of approximately US$20 million. However, in view of nickel price at present and the requirement to conduct maintenance, the matter to shut down this mine for a temporary period has been decided and, as Xstrata is expected to recover nickel price toward the end of 2008, a time to resume the operations is set up. Also, feasibility studies and development work into the energy conversion project in the Loma Miranda area, located 25 kilometers from the Falcondo site, are proceeding in order. The successful development of these projects will stabilize nickel production in Dominicana on a long run. |
| last modified : Tue 26 Aug, 2008 [11:14] |
