Bloomberg reported that Xstrata Plc plans to shutter the Sinclair mine in Western Australia in August because of plunging prices.

Mr Wayne Groeneveld GM of sustainable development at Xstrata's Australian nickel unit said that "Subject to there being no sustained improvements in the market conditions, it will be put on care and maintenance."

Mr Alex Passmore head of metals and mining research at Patersons Securities Limited in Perth said that "Frankly, it’s pretty amazing that Sinclair is shutting down because it's showing the decline in nickel prices is eating all the way down into relatively low cost. Xstrata paid a lot for Jubilee, it was a top of the market acquisition."

According to International Stainless Steel Forum, global stainless steel output, accounting for about two thirds of nickel demand, fell by 6.9% in 2008.

(Sourced from www.bloomberg.net)