Perth, Australia — MININGREVIEW.COM — 05 March 2009 – Albidon Limited – the Australian nickel producer backed by China’s Jinchuan Group Limited – has suspended output at its Munali operation – Zambia’s biggest nickel mine – following a 56% slump in the price of the metal since its July 2008 opening
In a statement to the Australian Securities Exchange released here today, the company said: “Depressed nickel prices have made ongoing operations at Munali unsustainable.”
Albidon – which had agreed to sell all output from the US$124 million (R1.25 billion) Munali mine to Jinchuan – had forecast production of 10 500 metric tonnes a year from 2010 to 2017. The mine is located 60 km south of the Zambian capital, Lusaka.
Jinchuan – owner of 18.4% of Albidon, and the largest nickel producer in Asia – has revealed that it has offered a funding package to allow the company to continue to operate.