Eramet, a prominent French nickel miner, recently announced additional cost cuts following its nickel division suffering more losses in the first half of this year.
According to a report from Reuters, this announcement comes after the mining company said it would alter its strategy to include the lower-grade nickel pig iron market with a new mining project in Indonesia.
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Nickel mining companies from across the globe are suffering the effects of a weakness in market prices, and Eramet is no exception. Pressure on nickel prices can be attributed to top producing nations Indonesia and the Philippines placing restrictions on their mining sectors.
According to Reuters, nickel prices were higher the first half of last year, but still less than production costs of Eramet’s nickel plant in New Caledonia.
“We’re working flat out to reach $4.50 which is still our cost target for the end of the year,” Chief Executive Christel Bories told the news source. “With a market price that languished below $4.50 in the first half and for some time before that, we’re convinced we have to go beyond $4.50 and pretty quickly.”
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