Another one bites the dust, FNX stops "commercial" production at Levack but will continue work there through the year. Unless nickel recovers it'll go on care and maintenance pretty quick.
FNX was always very vulnerable to volatile commodity prices, they made their name by acquiring known deposits from INCO, these deposits were too small or not profitable enough for the big miner. FNX, who's upper management is all old INCO dudes grabbed these marginal deposits and with the help of record nickel prices produced another major company in the Sudbury district. This is why FNX is really going to have to start squeezing pennies, with nickel under 5$ we know Xstrata and ValeINCO can survive, they've been there before. FNI, who shut down their mine yesterday and FNX...they haven't proved they can do it yet.
One other interesting thing about the Levack mine is that the Levack Footwall deposit was discovered right underneath it, this is a high grade deposit that will be mined. FNX has a lot of properties as well, they'll be alright.
They have some good properties and they are in the holy grail of mining, but it'll be a rough ride for them until metal prices come back up.
LDI Mines also was to be put on care and maintencance starting Oct. 29th.
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