Difficulties in finding a sustainable financial model for Ravensthorpe, higher operation costs, and lower nickel price forecast for the next few years, have prompted First Quantum to make a more drastic decision.
“Despite our 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,” First Quantum said in the statement.
The company said the decision to shut down the mine, with the process starting on May 1, was the best strategic move as it leaves the orebody intact for future value.
First Quantum estimates that around 330 positions will be eliminated when the mine ceases all operations this week. Major suppliers to the operation have been notified to allow them to prepare for the shutdown of activities at the site, the miner said.
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