QMEB ยป Employer shuts down after ‘significant’ losses
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Employer shuts down after ‘significant’ losses

Ravensthorpe mine workers
Ravensthorpe mine workers

A foreign-owned mining company will completely stop production because it is losing too much money.

First Quantum Minerals recently confirmed it would shut down its struggling Ravensthorpe nickel mine.

“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,” the Canada-headquartered company said in a public statement.

Nickel spot prices had dropped nearly 42 per cent to US$16,460 (A$24,812) a tonne between January and December 2023 according to the YCharts website. Since commodities are unlikely to increase in value management will axe about 330 workers.

“First Quantum acknowledges that its decision will have a significant impact on its employees and their families,” a spokesperson said according to Prime Creative Media.

“A smaller, dedicated care and maintenance team will be appointed from current Ravensthorpe nickel operation employees to ensure the site is safe and preserved for a future restart.”

Mostly locals are promised to be retained for the care and maintenance phase. Accommodation will continue to be provided nearby in Hopetoun, 293km northeast of Albany.

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