Singapore 03/08/2016 - Nickel metal output at Jinchuan Group is likely to remain low at below 12,000 tonnes in August - a production level it has maintained since June this year due to a lack of nickel ore, an official with China's largest nickel producer told FastMarkets.
Production has already slipped from around 13,000 tonnes in April - output in the month itself was down 500-1,000 tonnes from March.
"The main issue is still a lack of ore. Stoppages are continuing among suppliers," the official said.
The company had expected its nickel output to fall from the second quarter while it faces a shortage of nickel ore due to production stoppages among sulphide ore producers in countries such as Australia and Brazil.
One of its suppliers, Australia's Panoramic Resources, ended a concentrate sales agreement with the company after it decided to suspend operations at its Savannah mine at the start of this year. The mine was subsequently put into care and maintenance late in May.
Production at Jinchuan's own West One District mining area in China also remains suspended.
Jinchuan produced around 150,000 tonnes of nickel last year; output this year is likely to be 10,000 tonnes lower due to the ore problem, the official said.
(Editing by Mark Shaw)