Palmary Enterprises, controlled by Ukrainian billionaire Gennadiy Bogolyubov, will halt work at its Australian nickel project and curb operations at a chromite mine, sacking 182 miners, because of plunging metal prices.

The cuts "have become unavoidable given the impact on our business of the current adverse economic and market environment and the uncertain outlook,'' David Brook, a Perth-based spokesman for the Australian unit of Palmary, said today.

Underground mining at the Beta Hunt nickel operation was suspended on Friday, with the mine to be placed on so-called care and maintenance from mid-December, Mr Brook said.

Production will remain suspended until market conditions improve, he said.

The mine was scheduled to produce between 5500 tonnes and 6000 tonnes of nickel before closing, he said. The chromite mine in Coobina was to produce between 240,000 tonnes and 250,000 tonnes, he said.

Palmary controls about 10% of the world's high-grade manganese after buying Consolidated Minerals for $1.3 billion in January. – The Age