Reuters reported that HudBay Minerals will consider taking on a JV partner to help finance construction of its Fenix nickel project in Guatemala which could get the go ahead by the middle of 2010.

Mr Peter Jones CEO of Hudbay said that the company is currently working on a plan to develop a dedicated electricity source for the project in hopes of lowering its expected USD 1 billion price tag. HudBay will update the market on the project early 2010 and could make a decision on whether to proceed with construction around mid 2010.

He said that "As we move forward we will look at various financing alternatives, including potential joint venture partners off take agreements and other strategic options that could make Fenix more attractive for HudBay."

HudBay is also working on community relations at Fenix, which have long been testy as locals have occupied large expanses of company land near Lake Izabal in Guatemala claiming the land belonged to their ancestors. At times, violence has erupted at or around the property and in September a man was killed.

Winnipeg, Manitoba based HudBay acquired the project in mid 2008 but soon after it put the project on hold due to plunging nickel prices.

Recently, HudBay reported a slightly better than expected Q3 profit as lower costs helped offset the impact of weaker base metal production and prices. Recent stock gains at the company have been due to strong drilling results at its Lalor zinc gold deposit in Manitoba which has become the company's main development project.

(Sourced from Reuters)