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FACTBOX-Restarts of idled mines and metal plants

Fri Oct 9, 2009 5:49am EDT

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Oct 9 (Reuters) - Encouraged by higher prices, some metal producers have started to reverse earlier cutbacks and project delays, prompted around mid-2008 by plunging demand.

But for metals such as aluminium and nickel, where more cuts are still needed, such moves come on top of on-schedule start-ups of new operations and threaten to keep the market in surplus for longer than most.

Some analysts are also concerned that zinc producers, who were fast to curtail output as demand slumped, might rush to reopen at current prices.

Below are details of restarts of capacity previously idled by low prices and poor demand.

Oct 9 - Vimetco (VICOq.L) said it is restarting its Alum alumina refinery in Romania. The company began an upgrade programme at the plant in February 2007. [ID:nWLA5254]

Oct 1 - The new co-owners of Russia's Chelyabinsk Zinc Plant (CHZNq.L) have pledged to restore output to pre-crisis levels, a regional governor's press office said. [ID:nL1608533]

Sept 30 - Noranda Aluminum Holding Corporation said its New Madrid aluminium smelter in Missouri has initiated steps to return operations to full effective capacity. The company has recalled 38 hourly employees in preparation for the restart of its third potline in early October. [ID:nWNAB4907]

Sept 30 - Zambia's largest cobalt producer Chambishi Metals Plc will restart production in two weeks time when suppliers in the Democratic Republic of Congo (DRC) are expected to deliver cobalt concentrates, it said. Operations were suspended in December. [ID:nLU292615]

Sept 28 - Noranda Income Fund (NIF_u.TO) said sulphuric acid and zinc output at its Valleyfield plant in Canada will return to full capacity due to improvements in the sulphuric acid market. Production had been cut by about 20 percent since March.

Sept 25 - Zambia's Munali nickel mine will resume operations next month after the main shareholder, Jinchuan Group of China, secured financing for new equipment. [ID:nLP469083]

Sept 17 - Rio Tinto (RIO.L) Alcan said it is preparing to restart the 25 percent of capacity idled last January at its Vaudreuil alumina refinery. [ID:nWNAB0753]

Sept 17 - Belgium's Nyrstar (NYR.BR), the world's biggest zinc producer, said it would restart operations at its Balen plant in Belgium this month after a nine-month suspension due to weak demand. [ID:nLH513028]

Sept 14 - Zambia's Mopani Copper Mines (MCM), a unit of Glencore International, said it had reversed a plan to suspend output at its copper mines due to an uptick in prices and falling production costs. [ID:nLE472840]

Sept 14 - Belgium's Nyrstar said it had agreed to buy the East-Tennessee zinc mine complex in the United States from Glencore. The company said production would be restarted as quickly as possible. Nyrstar also said it had recently started limited operations at the Gordonsville zinc mine complex and would ramp up output over the next six months. [ID:nLE599375]

Sept 2 - Privately held Noranda Aluminium Holding Corp said it would increase production immediately at its Gramercy alumina refinery in the United States and St. Ann bauxite mine in Jamaica. The company cited increased customer demand. The announcement was made a day after Noranda became sole owner of the operations after buying Century Aluminum's (CENX.O) 50 percent stake.

Sept 1 - Bosnia's Aluminij Mostar began returning to full production because of increased demand and the recovery of the metal's price on world markets. [ID:nL1620868]

Aug 25 - Aluminium Corp of China Ltd (Chalco) (2600.HK) (601600.SS) said it had restarted 670,000 tonnes of alumina production capacity and 310,000 tonnes of aluminium capacity. [ID:nSHA49732]

Aug 17 - Liberty Mines LBE.V said it plans to restart production from the Redstone nickel mine near Timmins, Ontario by August 24. Mine has been on care and maintenance since end-October 2008.

Aug 11 - Century Aluminum said it has recently recalled 28 employees to work 21 refurbished pots at its Hawesville, Kentucky primary aluminium smelter. The company had allowed some broken pots to go idle, but has now repaired them. [ID:nN11541619]

Aug 10 - Mitsubishi Materials Corp (5711.T), Japan's third biggest copper smelter, said it has returned to full production, becoming the first major Japanese firm to reverse cuts. But the company said the situation still required careful monitoring. [ID:nT48233]

Aug 7 - HudBay Minerals (HBM.TO) said it may soon consider restarting the Chisel North zinc mine in Manitoba because of a recent rise in zinc prices. But the company said it needs to see more price stability before it makes the decision. [ID:nN07407244]

Aug 4 - Zambia's Baluba copper mine, on care and maintenance since the end of last year, will resume operations in December. The government had initially said production would start in May. [ID:nL4474009]

July 30 - Teck Resources (TCKb.TO) said it will resume full production at its Trail, British Columbia zinc smelter due to recovering demand for the metal. [ID:nN30377095]

July 16 - Horsehead Holding Corp (ZINC.O) says it will boost operations at its Monaca zinc smelter in Pennsylvania, by restarting a fifth furnace. Company said it is unclear whether it will be able to maintain higher production level for the remainder of the year. [ID:nWNAB8134]

July 6 - Hydro Aluminium, the German unit of Norsk Hydro (NHY.OL), said it will keep its large Neuss aluminium smelter open for the immediate future while a new German state aid plan for metal companies is assessed. Company said in April it would stop production in June. [ID:nL6311896]



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