FQM Suspends Operations at its Ravensthorpe Nickel Operations
FIRST Quantum Minerals (FQM) will suspend operations at its Ravensthorpe nickel operation in Western Austrialia due to low nickel price.
The global miner, owners of Kansanshi Mining Plc and Kalumbila Minerals Limited, in North Western Province of Zambia, has announced its intention to suspend operations at Ravensthorpe nickel operation and place it on care and maintenance next month.
The development will cost FQM an estimated US$10 million which has been attached to the suspension of operations and entering into care and maintenance with an additional US$5 million being weighed in for annual maintenance.
“The permitting process for the Shoemaker Levy orebody is planned to continue along with regular review of the market conditions for potential restart of operations. Restart cost, should favourable conditions prevail, is estimated at $10 million,” says FQM president Clive Newall, in a statement on behalf of the board of directors.
Commenting on the development, FQM chairperson and chief executive officer, Philip Pascall expressed disappointment at the decision to suspend operations at Ravensthorpe and place the operations on care and maintenance, stressing there was no option left due to continuing depressed nickel market conditions.
“This decision is disappointing to us. Ravensthorpe is an excellent operation with an outstanding workforce and supportive community but the continuing depressed nickel market conditions, over some years, leaves us no option,” Mr Pascall says.
He explained that FQM would, in the next few weeks work closely with employees and contractors to mitigate the impact and manage the staged shutdown of operations.
“Over the next few weeks we will work closely with our employees and key contractors to mitigate the impact and manage carefully the staged shutdown of operations. We will be offering assistance to employees in seeking further employment opportunities,” he adds.
The CEO, however, thanks all stakeholders who have played a part in the operations of Ravensthorpe since its restart in 2011.
“We extend our sincere thanks to our entire workforce, local community, all levels of Government and our partners in the mining sector who have assisted Ravensthorpe since its restart in 2011,” he says.
The global miner, owners of Kansanshi Mining Plc and Kalumbila Minerals Limited, in North Western Province of Zambia, has announced its intention to suspend operations at Ravensthorpe nickel operation and place it on care and maintenance next month.
The development will cost FQM an estimated US$10 million which has been attached to the suspension of operations and entering into care and maintenance with an additional US$5 million being weighed in for annual maintenance.
“The permitting process for the Shoemaker Levy orebody is planned to continue along with regular review of the market conditions for potential restart of operations. Restart cost, should favourable conditions prevail, is estimated at $10 million,” says FQM president Clive Newall, in a statement on behalf of the board of directors.
Commenting on the development, FQM chairperson and chief executive officer, Philip Pascall expressed disappointment at the decision to suspend operations at Ravensthorpe and place the operations on care and maintenance, stressing there was no option left due to continuing depressed nickel market conditions.
“This decision is disappointing to us. Ravensthorpe is an excellent operation with an outstanding workforce and supportive community but the continuing depressed nickel market conditions, over some years, leaves us no option,” Mr Pascall says.
He explained that FQM would, in the next few weeks work closely with employees and contractors to mitigate the impact and manage the staged shutdown of operations.
“Over the next few weeks we will work closely with our employees and key contractors to mitigate the impact and manage carefully the staged shutdown of operations. We will be offering assistance to employees in seeking further employment opportunities,” he adds.
The CEO, however, thanks all stakeholders who have played a part in the operations of Ravensthorpe since its restart in 2011.
“We extend our sincere thanks to our entire workforce, local community, all levels of Government and our partners in the mining sector who have assisted Ravensthorpe since its restart in 2011,” he says.