Cuba working to resume full nickel production

Cuba working to resume full nickel production
Mon Sep 22, 2008 10:29am EDT
By Marc Frank

HAVANA, Sept 22 (Reuters) - The second of three Cuban nickel plants was
scheduled to open this week, according to local radio reports, as the
industry struggles to resume full production after taking a direct hit
from Hurricane Ike two weeks ago.

"Repairs are moving forward at the Rene Ramos Latourt plant of Mayari
... it's hoped the plant can resume nickel production on the 25th,"
state-run Radio Angulo reported at the weekend.

The state-owned Rene Ramos Latourt is Cuba's oldest and produces around
10,000 tonnes of nickel plus cobalt per year.

Category Two Ike entered Cuba at Holguin's northern coast, where the
nickel industry is located, seriously damaging housing and buildings and
swamping the area with torrential rains and a storm surge.

The Pedro Sotto Alba plant in Moa Holguin, a joint venture between
state-run Cubaniquel and Canadian Sherritt International (S.TO: Quote,
Profile, Research, Stock Buzz), resumed operations a week ago.

The Pedro Sotto Alba plant is Cuba's largest and most efficient,
producing 33,000 tonnes of unrefined nickel plus cobalt per year.

The state-owned Ernesto Che Guevara plant in Moa Holguin, with a similar
capacity, suffered the greatest damage from the storm and it was not
clear when it would open.

The Caribbean island is one of the world's largest nickel producers, at
75,000 tonnes per year, and supplies 10 percent of the world's cobalt,
according to the Basic Industry Ministry.

Nickel is essential in the production of stainless steel and other
corrosion-resistant alloys. Cobalt is critical in production of super
alloys used for such products as aircraft engines.

Nickel emerged as Cuba's biggest export-earner in 2000. It garnered more
than $2 billion in 2007, with almost all output destined for Canada,
Europe and China.

Cuban nickel is considered to be Class II, with an average 90 percent
nickel content.

Cuba's National Minerals Resource Center reported that eastern Holguin
province counted 34 percent of the world's known reserves, or some 800
million tonnes of proven nickel plus cobalt reserves, and another 2.2
billion tonnes of probable reserves, with lesser reserves in other parts
of the country. (Editing by John Picinich)

http://www.reuters.com/article/marketsNews/idUSN2227462220080922?sp=true