Investment company Widespread Portfolios has lifted its "don't sell" guidance to shareholders after developments at a Vietnamese nickel mine were reported.
Ban Phuc Nickel Mines is a 90 percent-owned subsidiary of Asian Mineral Resources (AMR), in which Widespread has a 6.9 percent shareholding. That stake represents 62.2 percent of Widespread's total assets.
Overnight AMR announced in Canada that the Vietnamese Ministry of Industry and Trade had agreed that exports of nickel concentrate from the Ban Phuc project would be permitted for the five year period from the beginning of production.
The previous approval was for the period to the end of 2013.
Widespread managing director Chris Castle said today the move represented a significant advance by the Vietnamese government towards restoring the viability of the Ban Phuc nickel mine.
"This supportive attitude is likely to lead to a significant reduction in the presently proposed 20 percent nickel export tariff," he said.
It was comforting that tariffs on several other exported commodities had already been reduced.
Widespread's share price was down 2c to 24c after about an hour's trading today, having risen from 15c to as high as 29c on Monday when the advice not to sell shares was issued.
NZPA