By Jesse Riseborough
March 3 (Bloomberg) -- Albidon Ltd., the Australian nickel producer backed by China’s Jinchuan Group Ltd., suspended output at Munali, Zambia’s biggest nickel mine, after the price of the metal slumped 56 percent since its July opening.
“Depressed nickel prices have made ongoing operations at Munali unsustainable,” Perth-based Albidon said today in a statement to the Australian stock exchange.
Albidon, which had agreed to sell all output from the $124 million Munali mine to Jinchuan, had forecast production of 10,500 metric tons a year from 2010 to 2017. The mine is located 60 kilometers (37 miles) south of the capital Lusaka.
Jinchuan, owner of 18.4 percent of Albidon and the largest nickel producer in Asia, has offered a funding package to allow the company to continue to operate, it said.
To contact the reporter on this story: Jesse Riseborough in Melbourne at jriseborough@bloomberg.net
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