Author: Paul Ploumis30 Oct 2014 Last updated at 06:27:32 GMT
OTTAWA (Scrap Monster): The comments from the CEO comes right after the announcement of the company’s quarterly loss, behind which the main reason was the high production cost at the company’s Ambatovy Nickel Mine, which lead to the decline in the production, lower than the forecast by the company, based on which the company stated that, it will cut down 10 percent of its workforce, as a part of cutting down its production cost.
40 percent stake in the Ambatovy Nickel Mine, is owned by the company, and the unexpected power closure of the mine, and the problems in its mechanical equipments had a devastating effect on its results, which lead to the rising debt of the company.
The price of nickel, at the beginning of the year, which is January, declined slowly when it came to the month May to about 25 percent, as the result of excess supply and the decline of demand from China.
The CEO of the company, still expects for a change in the nickel price by the next year, due to the export ban on unprocessed and lower grade nickel, by Indonesia, the world’s largest producer of nickel.