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`Nickel output will fall in H2'
REUTERS
Melbourne, Nov 7: Australia's largest nickel miner WMC Ltd said the cost of nickel production will fall in the second half of 1999, but not enough to take nickel costs in the full year lower than 1998. "Our costs for 1999 on average will be a bit higher because the smelter was on rebuild but the second half of this calendar year is well under, both cash and full costs, compared to 1998," said chief executive Hugh Morgan.WMC's direct cash cost of a pound of nickel in 1998 was A$1.93 compared to A$1.98 in the first half of 1999. The fully allocated cost was A$3.18 a pound in 1998 and A$4.21 a pound in the first half of 1999. The company relined its Kalgoorlie nickel smelter in the first half, which contributed to a fall in nickel production to 41,500 tonnes in the first six months of 1999 from 57,600 tonnes the same time last year. The company placed three of its higher cost mines at its Kambalda nickel operations in Western Australia on care and maintenance in a bid to try and stem the losses from itsnickel unit. The nickel unit reported a loss of A$45.7 million in the first half of 1999. Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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