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."....
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