As a result of the closure of the Ravensthorpe nickel mine, over 300 jobs are reported to be at risk
First Quantum to cease operations at the Ravensthorpe nickel mine in Western Australia. (Credit: Michal from Pixabay)
Mining and metals company First Quantum Minerals has decided to place its Ravensthorpe nickel mine in Western Australia under care and maintenance.
The Canadian company has indicated that there is no fixed timeframe for the care and maintenance period.
As a result of the closure of the Ravensthorpe nickel mine, over 300 jobs are reported to be at risk.
First Quantum Minerals’ decision has been driven by the challenges in establishing a sustainable financial model for the Ravensthorpe mine. It was also based on increased operational costs and projected lower nickel prices over the next few years.
Earlier this year, the mining and metals company reduced the nickel production guidance at the Ravensthorpe mine due to weak nickel market conditions.
First Quantum Minerals has also informed all major suppliers to the Ravensthorpe nickel mine regarding the company’s decision.
Shire of Ravensthorpe President Tom Major said: “In January we committed to securing additional support and funding for our community, and we remain steadfast in that pursuit.”
“This development will undoubtedly affect many members of our community, from mine workers, their families and local businesses. It is important that we all support each other as much as we can right now.”
Located in the Esperance region, about 550km southeast of Perth, the Ravensthorpe nickel operation is an open-pit mine and primary processing plant.
First Quantum Minerals decommissioned mine at the Ravensthorpe operations in 2010. The company then made key improvements to the process and facilities and shipped the first concentrate exports in November 2011.
The Ravensthorpe mine was put on care and maintenance in 2017 due to persistently low nickel prices before it was restarted in early 2020.