Various nickel producers started June on shaky grounds. Labour negotiations at Vale Inco's Canadian 55,000tpy Voisey's Bay nickel mine appear to have reached an impasse, despite three months having passed since the contract expired. United Steelworkers, which represents workers at the mine, could soon be in a position to legally strike, although such moves have reportedly not been considered yet. Also, Canadian nickel output was adversely affected by Xstrata's decision to suspended operations at its 1 l,000tpy Montcalm mine in June, after finding structural damage resulting from ground movements. The announcement adds to the level of output restraint; we estimate that nickel mine production in Q2 will decline by close to 20 percent y-o-y.
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