The CEO of Lundin Mining Corp. has announced that production at the Aguablanca nickel and copper mine in Spain could be suspended later this year if there isn’t a “substantial improvement” in nickel prices. The Toronto-based miner has taken several steps to reduce costs in the face of lower base metals prices, including selling its Aljustrel zinc mine in Portugal and permanently closing the Galmoy lead, zinc and silver mine in Ireland. Chief executive Phil Wright said Lundin is taking a “very cautious” approach to its operations in 2009 and Aguablanca could be the next mine to close if prices don’t rebound further. The company is currently running on a modified operating plan which the company claims cannot continue beyond October, so unless there is a substantial improvement in nickel prices in the near future, then it’s likely that Aguablanca would come under close consideration for care and maintenance. The company is reviewing all its capital projects planned for 2009 and is scaling back its exploration activities until base metals prices improve.