QMEB ยป Commodity price crash indefinitely suspends mine
Down Tools Investor Relations Latest News Local Procurement Supply Chain News

Commodity price crash indefinitely suspends mine

Finniss mine workers
Finniss mine workers

An environmentally friendly resources company will postpone production for the unforeseeable future.

Core Lithium recently suspended its Finniss mine after the value of lithium ore plunged 80 per cent to US$95,500 (A$144,594) a tonne in the past year.

About 280,000 tonnes of ore stockpiles will continue to be processed until mid 2024 while mining operations are temporarily suspended in the Grants open pit. The strategy is promised to reduce operating expenses and generate stockpile revenue until “market conditions” improve.

“While suspending mining operations is a difficult decision, processing of ore stockpiles will continue to generate revenue and we will focus on managing our cash reserves prudently. We are working to put the business in the best position possible to recommence mining and proceed with BP33 when market conditions improve,” CEO Gareth Manderson said in a public statement.

The decision means the mine, which already has major project status, will postpone creating 360 construction jobs plus a further 250 operational positions. The Australian Associated Press speculated this special status could expire in February 2024.

“We understand that this decision is difficult for employees, contractors and some local businesses,” Manderson said.

Employer finds closure more profitable than continuing production
Multiple mines suspended due to commodity downturn
Mineral producer shuts down, sells mine
100+ mine workers lose their jobs due to ‘business as usual’.

Add Comment

Click here to post a comment

Gold/Silver Index