It is reported that Zimbabwe’s largest nickel producer Bindura Nickel Corporation is exploring measures to mitigate the impact of falling prices of the metal on the international market threatening the survival of the company.

Majority owned by Mwana Africa PLC, BNC issued a cautionary statement urging investors to exercise caution in dealing with its shares saying the poor international prices and a skewed exchange rate policy had crippled the its ability to trade profitably.

Bindura Nickel Corporation said in a statement that the cash flow in recent months has been affected negatively by a number of factors, including declining nickel prices, low production levels, unfavorable exchange rates and periodic power blackouts.

Prices of nickel have come down crashing over the past few months from an all time high of USD 51,800 per tonne in May 2007 to as little as USD 9,800 in recent weeks.

The prices have plunged almost 60% in 2008 as slowing global economic growth cuts demand for the metal, prompting a range of mine closures and project delays. While the fall in prices was affecting all nickel producers, it has been worse for Bindura Nickel Corporation operating in the world’s harshest economy with inflation as high as 231 million%.