Inco Strike

The reason for the pending Inco Strike is simple, share the wealth.

Canadian miners may advance Monday as nickel prices are expected to hit a record high.


Union says Inco offer 'an insult'

The possible strike comes as supplies of nickel, which is used in the production of stainless steel, have become increasingly tight.

Inventories of nickel on the London Metal Exchange hit their lowest level since October 2005 on Friday, falling 246 tonnes to 18,432 tonnes.

The price of nickel shot up on Friday by $900, hitting $22,900 a tonne, after union members urged workers to strike.

The increase represented a 4% increase on Thursday's close.

Tight supplies come amid moves to consolidate the industry.

Inco has been in the running to acquire Canada's Falconbridge, also a nickel producer, but Swiss mining group Xstrata recently entered the race, offering a higher bid.

Meanwhile Inco is the target of a hostile takeover from Teck Cominco, the world's largest zinc producer.

Also See:

Criminal Capitalism: Xstrata

Monopoly

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