MELBOURNE, Jan 15 (Reuters) - Australia's Queensland Nickel refinery (QNI) said it will cut more than 200 workers and restructure its operations after nickel prices plunged to decade lows and the company failed to secure government support.
QNI, which is owned by mining magnate and politician Clive Palmer, detailed the cuts in a statement, but did not make any reference to production cuts. Its spokesman could not immediately be reached for comment.
"Because of the current nickel price and because of the failure of our own government to offer any support for our company's continued operations in Townsville, today Queensland Nickel has been forced to make 237 workers redundant," QNI managing director Clive Mensink said in the statement.
Nickel producers have been under increasing pressure from nickel prices CMNI3 that slumped more than 40 percent last year and are mired at 2003 levels, largely due to a downturn in stainless steel demand, and as stockpiles hit record highs.
Canada's Sherritt International Corp S.TO and Japan's Sumitomo Corp 8053.T said on Wednesday they would book more than $1.7 billion of losses on their Ambatovy nickel mine in Madagascar. who purchased the refinery from BHP Billiton BHP.AX BLT.L in 2009, said last month the business was seeking "minimal" government assistance in the form of a guarantor for a A$35 million ($25 million) bank loan to avert closure.