First Quantum Minerals has announced it is reducing its operating activities in Western Australia under a new three-year plan corresponding with the anticipated period for weaker nickel prices.
The plan will see the company reduce operations at its Ravensthorpe Nickel Operation (RNO) and suspend mining operations at the Shoemaker Levy ore body and bypass the high-pressure acid leach circuit.
Existing ore stockpiles will continue to be processed through the atmospheric leach circuit, providing significant mining and processing cost reductions.
The cessation of mining and associated processing activities at RNO will reduce RNO’s directly employed workforce at the site by approximately 30 per cent, with contractors to be redeployed by their employers.
This new operating model represents a three-year plan under which RNO will maintain production of nickel concentrate from ore stockpiles before recommencing mining activities at Hale Bopp and Halley’s ore bodies.
The decision results from the significant downturn in the nickel price experienced during 2023 combined with currently higher operating costs in Western Australia and a requirement to improve the financial viability of RNO at current nickel prices.
RNO General Manager, Scott Whitehead, said reducing the mine’s operating activities for a sustained period was the best decision for the company, workforce and local region.
Mr Whitehead said that transitioning to a new operating model will allow the company to continue to produce and export its nickel product, which is a critical mineral and has a lower carbon footprint than other suppliers.
“The operational changes will ensure RNO 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.”
RNO is a local nickel concentrate exporter, expecting to produce on average approximately 16,000 contained tonnes per annum over the next three years.
