Nickel goes below $4: Mining suppliers get hit – by Jonathan Migneault (Sudbury Northern Life – November 25, 2015)

http://www.northernlife.ca/

In a year that has seen two mine closures in Greater Sudbury, the low price of nickel has also resulted in a significant downturn in jobs available for the city’s mining supply and services sector, says the Sudbury Area Mining Supply and Service Association (SAMSSA).

SAMSSA executive director Dick DeStefano said his members have been mum on the impact low nickel prices has had on their businesses, but said it has definitely resulted in fewer contracts with larger firms like Vale and Glencore.

Nickel hit a multi-year low of US$3.75 a pound Monday, and climbed slightly Tuesday to $3.92 a pound by 3:50 p.m.

KGHM placed its McCreedy West Mine into care and maintenance on Oct. 1, due to low nickel prices, which were around US$4.45 a pound at the time.

The small mine’s closure displaced 25 United Steelworkers members, who were able to apply for jobs at the nearby Morrison Mine, which has more copper than nickel.

But 15 workers at Morrison Mine also lost their jobs.

And in August 2015 First Nickel shut down its Lockerby Mine, after losing $33.1 million in the first quarter of 2015.

The company also said low nickel prices were to blame for the mine closure.

For the rest of this article, click here: http://www.northernlife.ca/news/localNews/2015/11/25-nickel-prices-sudbury.aspx

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