TORONTO (CP) -- In the latest announcement in what is expected to be an ongoing series of output scalebacks in the base-metal industry, FNX said Tuesday that the decision was prompted by "low commodity prices and low provisional metal accountabilities along with high operating costs."
While commercial mining has been suspended, the company added that work will continue during the current quarter to produce 35,000 tons of metallurgical test production. This ore will be stockpiled for batch processing to help finalize data on the deposits.
"Pending commodity prices and final metal accountabilities, a decision will be made at year-end whether to continue the suspension, put the Levack nickel contact deposits on long-term care and maintenance or to re-activate commercial production from this part of the Levack complex," FNX stated.
It added that the production suspension is not expected to result in layoffs, as workers will be transferred to other operations in the area.
Development at the Levack footwall deposit, Rob's deposit and the Podolsky mine "will continue to be aggressively advanced."
FNX also said it is "uniquely placed to weather the current economic downturn" thanks to its "strong balance sheet, zero debt and its ability to quickly and economically increase, decrease or suspend its production levels."
(c) The Canadian Press