Vale cuts may not stem tag decline
Dec 04, 2008 | 01:04 PM
| Mick Bowen
Analysts applauded the move by Brazilian miner Vale on Thursday to curb nickel and copper production at Canadian subsidiary Vale Inco Ltd., but warned the cuts might not go deep enough to stem the continuing decline in prices.
Rio de Janeiro-based Vale said it would halt nickel production at its Copper Cliff South Mine in Sudbury, Ontario, for an undetermined amount of time, starting in January, as well as cease nickel and copper production at Voisey's Bay in Newfoundland during July next year. Vale also said it would put off development of the $814-million Copper Cliff Deep project for a year.
"Vale is doing what's rational rather than let inventory build," according to BMO Capital Markets Corp. analyst Tony Robson. "This is a step along the road we need to take, but I think greater cuts need to be made."....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here