Nickel production has been suspended in the Dominican Republic as Xstrata Nickel halts operations at the Falcondo nickel operation. Volatile oil and nickel prices have squeezed the operating margins and have forced the mine and smelter to suspend operations for four months. In the meantime, the furnace will be repaired and other critical maintenance tasks undertaken such as converting the plant from oil and coal power.
The Falcondo plant has a capacity of 29,000 tonnes of nickel a year, approximately two per cent of the world's supply.
In the same week FNX Mining announced a reduction in its 2008 capital expenditures by $50.8 million to $186.6 million, as a result of a decision to delay production at one of its deposits in Sudbury, Ontario.
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