Canada's Fortune Minerals scales back mine on weak cobalt prices (updated)

Fortune Minerals

03/10/2019 17:29

(Adds background and details)
    Oct 3 (Reuters) - Canada's Fortune Minerals Ltd  FT.TO  said
on Thursday it would shelve plans to upsize its early-stage
cobalt mine in the country's far north while it continues to
hunt for a strategic partner. 
    The company's decision to scale back plans at its proposed
Nico development in Canada's Northwest Territories comes after
cobalt prices, hit by oversupply, have fallen from $47,000 per
tonne in January to around $35,470.
    Falling prices for the critical battery ingredient prompted
Glencore  GLEN.L  in August to halt output for two years at its
giant Mutanda copper and cobalt mine in the Democratic Republic
of Congo.  urn:newsml:reuters.com:*:nL4N2531PX
    London, Ontario-based Fortune Minerals said current prices 
do not justify expanding the daily mill production rate to 6,000
tonnes from 4,650 tonnes at its proposed Nico project, which
would also produce gold and bismuth. 
    “An environment that has seen curtailment from the world’s
largest cobalt mines is not conducive for an expanded, capital
intensive project at this time," Chief Executive Robin Goad said
in a statement.
    The company said it is continuing discussions with potential
strategic partners. 
    

 (Reporting by Jeff Lewis, Editing by Franklin Paul and Chris
Reese)
 ((Jeff.Lewis@thomsonreuters.com;))