More woes for Nickel - Mine closes

Vale the Brazilian mining corporation recently suspended production at its Goro Nickel processing plant in New Caledonia. This was a result of an incident that caused a 100,000 litres of effluent to leak into a nearby creek. New Caledonia is the worlds fifth largest producer of Nickel, located in the Pacific ocean.

The plant opened in 2010 at a cost of $6 billion and is expected to produce 40,000 tonnes per year from reserves of 120 million tonnes. It is not yet known how long production will be stopped until environmental inspectors have fully evaluated. With nearby Koniambo mine returning disappointing results added to shortfalls from Indonesia Nickel continues to increase in price.

As a result stainless steel supplies are limited mainly due to a desire from customers to purchase any stocks before the Nickel prices have a full effect. With Surcharges expected to continue up for June the outlook for stainless steel is for higher prices for months to come.

For all your stainless steel strip, coil and wire needs contact BS Stainless on +44 (0) 1772 337555 or email sales@bsstainless.co.uk to keep up to date with latest Nickel prices go to www.­bsstainless.­co.­uk