By Leia Michele Toovey- Exclusive to Nickel Investing News

^[1]As last week came to a close, Nickel futures took their biggest weekly fall in almost four years.

On India's Multi Commodity Exchange, MCX, the benchmark September expiry contract nickel for delivery in three months plummeted by Rs 73 to Rs 742 a kg, compared to the Rs 845 per kg price the metal started off the week.

Stockpiles in warehouses monitored by the London Metal Exchange advanced 378 to 51864 tonnes, the highest since July 1999. Nickel demand has been having a year of poor performance as demand is slow on account of a sluggish stainless steel sector.

This week's advancement of nickel stockpiles came despite the fact there has been a supply disruption following hurricane Ike's destruction in Cuba. The second of three nickel operations, the Rene Ramos Latourt plant of Mayari will likely resume production this week. The state-owned Rene Ramos Latourt is Cuba's oldest and produces around 10,000 tonnes of nickel per year; in addition, the mine also produces cobalt ^[2]. Category-II Hurricane Ike entered Cuba at Holguin's northern coast, where the nickel industry is located, seriously damaging housing and buildings and swamping the area with torrential rains and a storm surge.

The Pedro Sotto Alba plant in Moa Holguin, a joint venture between state-run Cubaniquel and Canadian Sherritt ^[3] resumed operations a week ago. The Pedro Sotto Alba plant is Cuba's largest and most efficient, producing 33,000 tonnes of unrefined nickel plus cobalt per year. The state-owned Ernesto Che Guevara plant in Moa Holguin, with a similar capacity, suffered the greatest damage from the storm and it is not clear when it would open. The Caribbean island is one of the world's largest nickel producers, at 75,000 tonnes per year.

Company news

Jinchuan Group Limited has lowered its price for nickel on the back of diving global prices. The price cut, effective September 17, 2008 will see the per tonne price for refined Jinchuan nickel fall by US$1,025 to US$21,225. Chinese companies are expecting LME nickel prices will continue to be pulled down by the ongoing U.S. financial crisis and spot nickel prices in the domestic market will follow suit. A further negative mark on the nickel market, Jinchuan does not expect the demand for nickel will to pick up at all this year, despite the approach of the traditional peak season for nickel consumption, as the Chinese economy has slowed in growth.

Australia cut its estimates of annual nickel output on Monday, citing falling prices and a domestic energy crisis. They also downsized their projections on zinc. Australia is a major global supplier of iron ore, coal ^[4] and base metals ^[5] and has been making record profits from sales to China and other developing economies, but there are concerns that the party may finally come to end over the next 12 months. Australia accounts for around 13 to 17 per cent of global nickel production, mined nickel output was forecast to total 236,000 tonnes in 2008-09, down from a previous forecast of 256,000 tonnes but still up sharply from 190,000 tonnes a year ago. Nickel prices have slid, falling 35 per cent this year on weaker demand from stainless steel mills, but ABARE said its lower nickel forecast for 2008-09 largely reflected the power crisis, which erupted days before its last forecast in June.

Independent Nickel Corp. today confirmed that the previously announced special meeting of shareholders, originally scheduled to occur on September 17, 2008 has been adjourned to October 8, 2008. Independent Nickel also reminds shareholders that the increased offer from Victory Nickel Inc. to purchase all of the outstanding common shares of Independent Nickel is open for acceptance until 6:00 p.m. on September 24, 2008. The Board of Directors recommended on September 3, 2008 that shareholders accept the Amended Offer, having unanimously determined that the offer is fair and is in the best interests of Independent Nickel.