AP cited Rio Tinto as saying in its annual report that construction of a proposed nickel and copper mine in Michigan's Upper Peninsula is being delayed because of poor market conditions.

But Mr Jon Cherry, project manager of the mine said that the announcement does not mean the Kennecott Eagle mine is off the table. He added that planning and preparations are continuing with the expectation that it eventually will be built.

He noted that "Our offices in Michigan are remaining open and we are moving forward. None of the 25 employees are being laid off.”

Rio Tinto included its statement about Kennecott Eagle in a lengthy 2008 earnings report. It said development of the mine was being deferred until market conditions recover.

The report did not say what deferred meant or how long the delay would last. A Kennecott spokeswoman said the reference was to financing for building the mine.

Mr Cherry further said that "We are continuing to work on our permits, litigation and engineering design so that when the opportunity presents itself we will be poised to evaluate economic conditions and our next steps."

Kennecott Eagle would be the only US mine where nickel is the primary mineral produced. The targeted deposit is expected to yield 300 million pounds of nickel, 250 million pounds of copper and trace amounts of other minerals.

(Sourced from AP)