Published on Monday, 29 April 2024 at 2:40:08 PM
SHIRE OF RAVENSTHORPE STATEMENT
This afternoon First Quantum Minerals (FQM) advised the Shire of Ravensthorpe it is placing the Ravensthorpe Nickel Operation (RNO) into a care and maintenance process from Wednesday 1 May 2024.
The Shire of Ravensthorpe expresses sympathy for all workers and their families, who are directly affected by this decision.
FQM has advised there is no specific timeframe on the care and maintenance period.
Since January, when FQM first announced a reduction in operational activities at RNO, the Shire of Ravensthorpe has actively sought funding to help alleviate economic challenges for the community, and will continue to seek similar avenues of support.
Shire President Tom Major acknowledged the significant impact today’s news will have on the entire community.
"While disappointing, this decision does not come as a complete surprise," he said.
"In January we committed to securing additional support and funding for our community, and we remain steadfast in that pursuit."
"This development will undoubtedly affect many members of our community, from mine workers, their families and local businesses. It is important that we all support each other as much as we can right now.”
Downturn in the nickel price
FQM advised the decision reflects the difficulty that it has experienced in achieving a sustainable financial model for RNO with lower nickel prices projected for the next few years and higher operating costs.
In January FQM said it would maintain operations by transitioning to a new operating strategy that involved ceasing mining activities, but continuing to process stockpiles. It now says this approach is incurring significant current and projected losses.
FQM said all major suppliers to RNO have been informed of the decision to move to care and maintenance.
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