May 16 CaNickel Mining Ltd said it has
been asked by Manitoba regulators to stop work at its main Bucko
Lake nickel mine and the Canadian miner said it has also
temporarily suspended its mill operations.
The order by Manitoba's Workplace Safety and Health Division
will be in effect until an independent engineer reviewed the
current mining plan and audited mining operations over the past
The company will also need to revise the current mining plan
according to the review before starting operations.
Due to weakening nickel prices and higher mining costs
financially sustainable mining operations are not currently
possible, the company said in a statement.
Sharp falls in industrial metals prices since August and
faltering demand have prompted high-cost producers to cut
The company said in December it would cut output at its
flagship mine by nearly a third. The company planned to reduce
output at the mine in Manitoba to 400-500 tonnes per day (tpd)
from 600-700 tpd.
The company shares, which had been halted since 0920 Eastern
Time on Wednesday, closed at 2.5 Canadian cents on Tuesday on
the Toronto Stock Exchange.