Nov. 12 (Bloomberg) -- Sumitomo Metal Mining Co. will delay construction of a nickel ore processing plant in the Philippines by one year as the slowing global economy cuts demand and prices for the metal, Nikkei English News reported without saying where it got the information.

The plant on Mindanao Island, designed to have annual capacity of 30,000 tons, may start production in 2013, Nikkei said.

Higher construction costs played a role in delaying the plant, according to Nikkei. The plant may cost up to 200 billion yen ($2 billion) to build, instead of the initial estimate of 120 billion yen, Nikkei reported.

To contact the reporter on this story: Mina Kawai in New York at minkawai@bloomberg.net.

Last Updated: November 11, 2008 13:17 EST