Exploration and development company FPX Nickel has closed the private placement financing with new cornerstone investor Sumitomo Metal Mining, raising C$14.45-million.

New Caledonian nickel producer Prony Resources is facing an “alarming” situation amid a slump in metal prices as it waits for the possibility France will offer monetary support for the territory’s nickel sector, a company spokesperson said.

The miner on Monday posted a near 50% drop in second-quarter metallurgical coal output as it completed major work at an underground mine at its Illawarra operation, while its quarterly manganese production also missed estimates.

Wyloo Metals Pty Ltd., the private nickel producer owned by billionaire Andrew Forrest, is shutting down its Western Australian mines due to a sharp slump in prices for the key transition metal.

A sharp slide in nickel prices over the past year, driven by a jump in Indonesian supply, has hit Australian nickel producers, leading to mine closures, production cuts and writedowns in recent months.

Sumitomo Metal Mining Canada is investing about C$14.5 million to gain a 9.9% interest in FPX Nickel (TSXV: FPX).

BHP Group said on Thursday it was reassessing the value of its nickel operations after a price slump, in a move that could lead to writedowns amid an oversupply of the metal used in electric vehicle batteries.

South Korean battery manufacturer Samsung SDI has become the latest company to invest in Canada Nickel Company (TSXV: CNC), which is developing the Crawford nickel sulphide project in the Timmins-Cochrane mining camp of Ontario.