"...It is important to note that in this low price environment, 50 to 60 percent of nickel mining firms are operating at a loss. Analysts say the highest-cost nickel mines are located in the Dominican Republic, Greece, Cuba, Western Australia and New Caledonia.

Many mining firms have been vocal about the state of the nickel industry and its impact on their operations. Eramet (EPA:ERA) said losses at its Societe Le Nickel operations are “not sustainable,” and Vale (NYSE:VALE) has announced plans to suspend operations at its Birchtree mine in Manitoba on October 1 due to low nickel prices.

Others have been more successful. BHP Billiton (NYSE:BHP,ASX:BHP,LSE:BLT) has an application before the Environmental Protection Authority of Western Australia to dig two new mines and extend the life of its Nickel West project. The firm’s existing mines are currently unable to produce enough ore to supply the company’s Kalgoorlie nickel smelter.

Interestingly, the International Nickel Study Group is predicting a global primary nickel supply shortage in 2017, meaning that some nickel price support could be around the corner. That said, the group recognizes the impact that financial, economic and political uncertainties could have on the nickel market, and notes that “effects of the above on both the supply and demand for nickel are not fully known.”

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