Base metal mines dipping into the red are proving unexpectedly resilient against output cuts, which is likely to prolong and deepen already weak prices.
Operations at Glencore’s Nickel Rim South mine in Sudbury, Ontario were suspended until further notice for a second day on Wednesday after a worker was killed underground on Tuesday morning.
The South African mining industry’s delicate make-or-break phase has been outlined by some of the sector’s leading lights who make it clear that only give-and-gain will prevent it from losing colossal value.
Brazilian iron-ore producer Vale has reported record production volumes for the period ended September 30, as production and productivity improvements more than offset the closure of its higher-cost operations during the period.
Philippines-Listed Nickel Asia Corp. saw a 40 percent drop in the value of its nickel ore shipments in the first nine months of the year despite a 12 percent increase in shipment volume.
Nickel prices have rebounded after dropping to a near seven-year low last week, buoyed by market speculation that heavily indebted miner and trader Glencore Plc could curb output following cuts to its copper and zinc production.
Nickel miner Western Areas will defer nearly A$32.6-million in capital expenditure from 2016 to 2017 as it battles the sustained decline in nickel prices.