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.
Canadian First Nickel Inc (TSX:FNI) shares were down almost 22% this morning (11:11 ET) to 70 Canadian cents, after the company was ordered to stop work at its key mine Lockerby by The Ontario’s Ministry of Labour over safety issues.
In a statement, the company said it is developing a plan to fix the problems with its second exit over the coming days.
“We intend to address any deficiencies identified by the assessment in order to ensure a safe working environment,” said Chief Executive, Thomas Boehlert.
First Nickel is in the process of ramping up production at the nickel and copper mine in the Sudbury Basin, and expected to produce 6.3 million to 7.4 million pounds of nickel in 2012.
