While many of the staff members from the Ravensthorpe nickel operation (RPO) will be made redundant, owner First Quantum Minerals is taking steps to keep as many employed as possible.
It comes as First Quantum places the WA site into a care and maintenance process from May 1. All production at the site is expected to cease by late May, with wind-down activities planned over the coming weeks.
“First Quantum acknowledges that its decision will have a significant impact on its employees and their families,” a spokesperson for the miner said in a statement.
“A smaller, dedicated care and maintenance team will be appointed from current RNO employees to ensure the site is safe and preserved for a future re-start.”
In addition to keeping on as many staff as possible, First Quantum will continue to support the Ravensthorpe and Hopetoun communities in any way it can.
“The company remains committed to supporting the local community and will play an active role within the Shire of Ravensthorpe throughout the care and maintenance period,” the First Quantum spokesperson said.
“This will include ensuring a large proportion of the care and maintenance team are based locally and maintaining the current First Quantum-owned housing within Hopetoun.
“Recognising the impact that this decision will have on the region, the company will continue engaging with the Ravensthorpe and Hopetoun communities and provide an appropriate level of community investment and support in the period ahead.”
After first scaling back operations in January, First Quantum again cited lower nickel prices and higher operating costs as major factors in the decision.
“Despite RNO’s best efforts to maintain operations by transitioning to a new operating strategy that involved ceasing mining activities, processing stockpiles and altering its approach to production, the site is incurring significant current and projected losses,” the spokesperson said.
“RNO will continue to meet all its environmental management and monitoring, rehabilitation and other regulatory requirements for the site.”
Ravensthorpe joins the Cosmos nickel mine in WA in entering care and maintenance in 2024, with owner IGO also citing a weakening nickel market as a driver in the decision to shutter the site.
“We still believe there is value in Cosmos; however, in this nickel environment we need to be disciplined with our allocation of capital, while retaining our optionality to restart if market conditions improve,” IGO managing director and chief executive officer Ivan Vella said in January.
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