Albidon to suspend Zambia operations

Australia-listed Albidon, 50 percent owned by China's Jinchuan Group, has temporarily suspended operations at it Zambia's Munali nickel mine citing cash flow problems due to low metal prices.

"There can be no guarantee that alternative finance will be obtained in the near future and therefore (Albidon) believes in suspending operations for the company," it said in a statement posted at the weekend on the company website.

Albidon, which halted operations in mid-2008 at the southern African country's only nickel mine following a fall in metal prices, resumed output early last year after Jinchuan took a stake and invested $37 million.

In July this year, Albidon projected 2011 output of nickel in concentrate to reach 56,000 tonnes but had since revised the figure downwards due to operational problems.