First Quantum Minerals (FQM) will scale back its operations at its Ravensthorpe nickel mine in Western Australia.
The company said the decision is a result of the significant downturn in nickel prices experienced during 2023, combined with the currently high operating costs in WA.
Approximately 30 per cent of the 420-person workforce will be let go, with contractors to be redeployed by their employers.
FQM said it will lean on ore stockpiles to continue producing nickel, which are expected to be processed over the next 18 months.
Mining is set to resume at the Hale Bopp and Halley’s ore bodies when prices recover as part of the company’s three-year plan.
“Transitioning to a new operating model will allow us to continue to produce and export our nickel product, which is a critical mineral and has a lower carbon footprint than other suppliers,” Ravensthorpe nickel operation general manager Scott Whitehead said.
“The operational changes will ensure Ravensthorpe remains viable longer term and we will retain most of our residential and FIFO workforce, thereby supporting the communities of Hopetoun and Ravensthorpe and providing income for the region and Western Australia.
“It’s important we position ourselves to respond in a timely manner to future improvements in the nickel price by being able to reactivate our mining activities at the preferred time.”
FQM expects Ravensthorpe will produce approximately 16,000 contained tonnes of nickel per annum over the next three years.
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