Recent Fall In Global Metal Prices Forces The Largest - Dec 04, 2008

The recent fall in global metal prices has forced the world's largest nickel miner, Norilsk Nickel International, to urgently consider an operational review of Tati Nickel Mine operations.We have been affected by the global financial crisis and the fall in the metal prices in particular," says Tati Nickel's Manager (for) Organizational Capability, Peter Meswele. Tati Nickel Mine, which recovers copper, nickel and cobalt, is located a few kilometres west of Francistown.

The mother company, Norilsk Nickel International, recently warned the likelihood of cutting production at its non-Russian assets, including Tati Nickel Mine. Nickel is currently trading at about one-fifth of its record price of $51,800 a tonne reached last May.

"We are busy toying around with cost reduction strategies and other means of reducing costs," Meswele says. "We will want interventions to be put in place to make sure that we survive." Tati Nickel Mine's employees have been warned of possible job losses. Management has also halted a possible resumption of mining at Selkirk Mine south of Phoenix Mine.