TORONTO (miningweekly.com) - Canadian diversified mining and energy firm Sherritt International will draw up a new development plan for its Ambatovy nickel/cobalt project, in Madagascar, and warned on Tuesday that the revisions could delay the mine's start-up.

Sherritt owns 40% and partners Sumitomo and Korea Resources each have a 27,5% stake in the mine, which is designed to produce 60 000 t/y of nickel and 5 600 t/y of cobalt over 27 years.

However, lower metals prices and changing market conditions have forced the companies to look for ways to renegotiate contracts for construction materials, freight and labour.

Sherritt said the partners may also defer some capital spending, and will study changing the construction methods.

The project was initially expected to start producing as early as 2010, but Sherritt CEO Jowdat Waheed warned last month that this timeline was looking less likely.

The company's stock fell 4,17% on Tuesday morning, to C$1,84 a share by 10:52 in Toronto.

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