Australia's Mincor Says Cuts Nickel Output Target
[2008-12-23 17:06:09]
Australian miner Mincor Resources NL said it expects its production of nickel ore to be in a range of 16,000-19,000 tons in fiscal 2009, down from an original plan of 19,500-20,500 tons, following a business review.
"Due to the structure of its mining business, Mincor has the advantage of a high degree of flexibility in its choice of production levels. This allows the company to tailor production to the prevailing nickel price," Mincor said in a statement on Thursday.
Nickel prices are down about 55% this year due to a decline in stainless steel production.
The effect of the plan would be to reduce the company's cash costs to a range targeted between A$5.40 and A$5.70.
It said it plans to increase production again when nickel prices recover.
Minara also reported production of 4,358 tons of nickel concentrate for the quarter ended 30 September, up from 4,195.9 in the previous quarter.
Mincor shares were 12.3% higher at A$0.73 at 02.54 GMT, in a broader market up 3.2%.
By James Thornhill, Reuters.
