Will Xstrata do plant referbishment and upgrades in Canadian operations when prices are low, LME inventory would suddenly drop and the Ni price would take a nice bump up.

Xstrata suspending operations at their Falcondo Ferronickel Operations in the Dominican Republic comes as no surprise.

The combination of lower nickel prices and extremely high oil prices are having a negative impact on the production of nickel from laterite deposits.

It is evident, that the ability of laterite deposits to provide the necessary nickel supply for future demands is limited unless one anticipates substantially cheaper oil prices or higher nickel prices." --Mark Jarvis