Sherritt cuts nickel guidance following Cuba bridge collapse

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Wednesday, November 30, 2016

Sherritt International lowered its 2016 nickel guidance as a result of a bridge collapse at its Moa operation in Cuba.

The Toronto-based company now expects to produce 32,500-33,000t, down from 33,500-34,500t, according to a statement. Cobalt guidance is unchanged at 3,300-3,800t, as higher volumes of third party feed offset reduced production.

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Four workers were killed when the bridge collapsed on November 22. The workers were repairing the bridge following damage during Hurricane Matthew in October.

ALTERNATIVE ACCESS

The bridge provides the main access from the town and port of Moa to the mine site and leach plant.

A temporary bypass over the river is now in place, while secondary access from another unsurfaced road between the port and plant is being upgraded to carry heavier loads, Sherritt said.

Plant operations have resumed, but transport to the port is affected by longer travel times and the need to carry lighter loads. The timing of more permanent repairs or replacement of the bridge is not yet known.

Moa is a 50:50 JV with Cuba's General Nickel Company.