A global mineral producer will suspend work at an operation because it is not making enough money.
Glencore recently confirmed it would transition its Koniambo Nickel SAS (KNS) mine into care and maintenance due to a lack of profitability.
“For over 10 years Glencore has been the primary funder of KNS without ever realising a profit. Glencore will shortly initiate a process to identify a potential new industrial partner for KNS,” the company said in a public statement.
The site has been offered government financial assistance to stay open. However, the proponent decided it was still not worth keeping its doors open.
“High operating costs and current very weak nickel market conditions means KNS remains an unprofitable operation,” it said.
“Even with the proposed assistance, KNS remains an unsustainable operation and Glencore cannot justify continuing to fund losses to the detriment of its shareholders.”
Affected employees will be retained for six months to support the transition.
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