Bindura Nickel Corporation, Zimbabwe’s sole producer o f the mineral, announced Friday it was suspending mining operations because of t h e economic downturn in the country.
In a statement, the company said it had also been hit hard by falling nickel pri ces on the international market and frequent power outages at its mines.
But Bindura Nickel Corporation said the main reason was the unstable economic en vironment in Zimbabwe in which inflation, for instance, was around 700 million p e r cent.
It said other factors included an unviable exchange rate offered by the country’ s central bank.
“The decision (to shut down) has not been taken lightly. However, the long-term survival of the company depends on the immediate adoption of several cost-cuttin g measures which include the temporary suspension of some business activities,” t h e company said in the statement.