Low Nickel Prices Likely to Hurt Junior Miners

Northern Life reported that Bruce Jago, former president of a junior mining company, and David Robinson, a Laurentian University economics professor, agree that while larger mining companies are not likely to be affected by lower nickel prices, smaller explorers hoping to sell their properties to big companies will be.

As quoted in the market news:

With large, integrated operations, it’s difficult to close mines, because the smelter depends on the ore coming from the mines, he said. “That’s one of the reasons I worry a little less than I would,” Robinson said.

But exploration companies who find mineral deposits and develop them in hopes of selling them to large mining companies are hurting, he said.

Robinson said larger companies already have a number of properties in line for development, and aren’t in the market for more.

Click here to read the full Northern Life report.