By Leia Michele Toovey- Exclusive to Nickel Investing News

^[1]The sharp retreat in the price of nickel ^[2] in 2008 as demand from the key stainless steel ^[3] sector plummeted has forced several producers to curb output or defer projects.

So far, in 2008, and extending into 2009, mines in Australia, Canada, Finland, Africa and Asia have cut output by approximately 49,500 tonnes; smelters will process 54,000 fewer tonnes. In addition, many companies that had planned expansions based on higher prices have been forced to veto their plans.  So far, Companies that have announced delays include Fox Resources, who has postponed their Sholl B2 nickel project to 2009.  Minara Resources has deferred heap leach expansion at Murrin Murrin in Australia.  Vale deferred its Onca Puma project in Brazil. HudBay's Fenix mine and ferro-nickel project in Guatemala, with initial 22,000 tonnes per year capacity has been postponed. Sherritt's Ambatovy project in Madagascar could be delayed, and the company has also suspended about $220 million in spending at its Moa nickel operations in Cuba and at the Fort Saskatchewan refinery in Canada.

While nickel miners struggle, Rio Tinto Group ^[4] is looking at increasing its exploration program. Strong spending on exploration will be maintained next year despite a review to reduce the firm's total costs. Rio is also looking at linking up with companies that are no longer able to afford their exploration programs. Rio is clear to point out that while  they have no intention of acquiring struggling juniors, they are interested in participating in the exploration of some of the better prospects assuming the burden of exploration in exchange for earning a direct investment.

Rio Tinto has had "spectacular" prospecting results at a U.S. nickel deposit and is pushing two other successful projects into pre-feasibility studies. Early in 2009 when annual results are announced the group plans on making public the details of a new nickel sulphide deposit in the state of Minnesota. Rio has also finalized two other successful exploration projects that will be transferred to colleagues to asses the validity of mine development.  

The Philippines' second biggest mining firm Atlas will build a nickel-cobalt leaching plant southwest of the country's capital city. Atlas Consolidated Mining and Development Corp ^[5] said in a statement to the stock exchange it will build the plant near its Berong nickel mine on Palawan Island, dropping an earlier plan to build a similar facility in China. China's Jiangxi would fund the construction in exchange for a long-term laterite ore supply agreement. In the current economic climate, by processing its own ore, Atlas will add value to its mining operations and save on shipping costs. The plant will have an initial capacity of 3,000-5,000 tonnes of mixed nickel-cobalt hydroxide per year, which will eventually be increased to up to 40,000 tonnes. The Berong project, potentially the world's fourth-largest nickel laterite resource, is shipping ore with an average grade of around 1.5 per cent to a unit of BHP Billiton.

Crowflight Minerals Inc. (TSX.V: CML) shares began trading on the TSX on December 3. The Crowflight Minerals is a Canadian junior mining company that is bringing the Bucko Lake Nickel Mine near Wabowden, Manitoba into production. Full commercial production is expected to be achieved in early 2009. The Company is also focused on nickel, copper ^[6] and Platinum ^[7] Group Metal projects in the Thompson Nickel Belt and Sudbury Basin.