Vale Shuts Down Goro Nickel Processing Plant Following Effluent Spill

Reuters reported that Vale SA (NYSE:VALE) has suspended production at its New Caledonia-based Goro nickel processing plant due to an effluent spill containing some acid. The company will not be able to restart operations until it gets the okay from the local government.

As quoted in the market news:

While analysts said the shutdown could prove short-lived, the news fed already bullish sentiment in nickel.

Nickel prices on the London Metal Exchange (LME), already up by more than a third this year due to supply constraints in Indonesia and the possibility of sanctions on Russian metal, hit the highest in more than two years on Thursday.

The government of New Caledonia was not immediately available for comment.

Click here to read the full Reuters report.