Vale Inco has fallen further behind schedule in its efforts to begin installation of a waste pipe at its massive Goro project in New Caledonia, but a company official said the mine is still on budget and on target.
Cory McPhee, spokesman for the nickel producing wing of Brazil's Vale, also said the company did not anticipate any changes to its operations as a result of falling nickel prices.
He said Goro was still expected to start operating in late October or early November with a development budget of $3.2bn.
The company halted work on the waste pipe at Goro earlier this year following opposition from environmentalists and locals.
Vale had planned to resume work in July, but McPhee said it has not yet been able to do so. The company continues to discuss the project with the community and the delay has not yet affected the overall schedule, he said.
"The negotiations are proceeding and there are windows that will close as time goes by," he said.
"But at this point in time, we're still able to get going on the pipe and get it finished in time to see the project through to the timeline that we have in place."
Vale acquired Goro when it bought Canada's Inco in 2006. At full capacity, Goro should yield 60,000 tons of nickel a year.
Spot nickel was trading around $20,850 a ton Wednesday, down 21% so far this year, and about 60% below its peak in 2006.
The fall in the price prompted rival Xstrata Plc to announce last week it was suspending operations at its Falcondo mine in the Dominican Republic.
McPhee said Vale was not planning any similar moves, either with its current production or projects, and said the company's view is that nickel price fundamentals are strong.
"It's our business to monitor the nickel market on a regular basis, but at this point in time, our projects are proceeding," he said.
by Cameron French.
