Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian mining and energy company Sherritt is expecting production declines in Cuba in 2011, Cuba Standard reported:
Sherritt, Cuba’s largest foreign investor, said in its fourth-quarter financial report that it expects moderate production declines in nickel (-2%) and cobalt (-2.9%), and considerable declines in the production of oil (-7.1%) and electricity (-18.7%).
Even so, the company is ratcheting up capital investments on the island. Sherritt expects to invest $50 million in its Moa nickel joint venture in Cuba this year, up from $40 million in 2010. Also, Sherritt and its joint venture partner Cubaníquel are “reviewing options for the completion of the Phase 2 Expansion and the construction of the sulphuric acid plant at Moa,” the company said in its report, adding that these projects are not included in the capital spending projections for this year.
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