South32 CEO says Colombia nickel mine needs cash flow plan

June 6, 2016

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South32, the diversified miner that’s cutting its global workforce on lower commodity prices, says its loss-making and strike-threatened Colombian nickel asset must deliver a plan to return to profits in the coming fiscal year to remain in operation.

Cerro Matoso is facing a deadline of July 2017 to demonstrate how it’ll begin to improve cash flow, CEO Graham Kerr said in an interview last week in Melbourne. The Perth-based producer is continuing talks with union members at the asset to avert a planned strike this month amid a dispute over a wage offer, he said.

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