China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
The Bucko Lake Mine in Manitoba is scaling back operations due to a fall in nickel prices.
The mine’s owner, Vancouver-based CaNickel Mining (formerly Crowflight Minerals), said Thursday that ore production will be reduced from 600-700 tpd to 400-500 tpd. Reducing production is expected to save the company about $1 million per month and allow it to complete construction of the paste backfill plant and tailings facility expansion.
The mine near Waboden, Manitoba, re-opened in June.
Nickel has been one of the metals hardest hit by the current economic downturn. The price has sunk from a 52-week high of $13.20/lb to a low of $5.27/lb on December 28th. It ends the year trading at $8.42/lb.
CaNickel also announced it has entered into an agreement with Luckyup Investment Limited, a third party based in Hong Kong, to increase its one year term debt facility from US$15 million to US$25 million. The company is planning a feasibility study to examine upgrading the mill and flotation facility at Bucko Lake to 1300 tpd, as well as a new study to optimize its mining methods.
Image of the Bucko Lake Mine is by CaNickel Mining.
