Soaring costs hit Xstrata

Last updated 13:45, Tuesday, 19 August 2008

FOLLOWING on from yesterday’s announcement of BHP Billiton’s full-year numbers (see City News), today it was UK mining group Xstrata hitting the headlines.

It has announced that one of its nickel mining and processing operations, Falcondo, is temporarily suspending operations due to current market conditions.

The combination of high oil prices, increasing costs and lower nickel prices has been the main cause although the shutdown had been anticipated.

BHP Billiton shares opened 33p lower at 1504p while Xstsrata was down 51p at 2772p.