Reuters reported that no start date has been set for the reopening of the Fenix nickel project in Guatemala owned by HudBay Minerals although economic conditions are improving.

The company's Guatemalan partner said that the project, which HudBay bought in 2008 when it acquired Canadian miner Skye Resources was suspended as nickel prices plummeted in the wake of the global financial crisis.

Mr Regina Rivera a spokesperson for Compania Guatemalteca de Niquel or CGN HudBay's local partner said that a decision on restarting work at the mine in the eastern Guatemalan town of El Estor could be made later 2009.

Mr Regina Rivera said that "We're still in slowdown but there are some positive signs, nickel prices have improved and the global economic crisis has started to get better."

He said that CGN is currently carrying out a study to evaluate a number of options including forming an alliance with an existing local generator or investing in a hydro electric plant.

The ferronickel mine on the banks of Guatemala's largest lake was mothballed for more than 2 decades after nickel prices dropped in the early 1980's.

Skye Resources which acquired the project in 2004, came up against local opposition to the reopening of the mine with squatters occupying company land and burning down a hospital and community relations office built by Skye.

(Sourced from Reuters)