First Quantum’s decision to shut down their Ravensthorpe nickel mine has sent shockwaves through the community as over 300 jobs are set to be eliminated this week. The mine, a major employer in Ravensthorpe and nearby Hopetoun, has struggled to find a sustainable financial model amidst higher operation costs and a bleak nickel price forecast for the next few years.
Despite efforts to transition to a new operating strategy, including ceasing mining activities and processing stockpiles, the company has deemed the mine’s current and projected losses too significant to continue operations. This move, scheduled to begin on May 1, will leave the orebody intact for potential future value.
The Ravensthorpe mine has a history of challenges, having been suspended in both 2009 and 2017, resulting in significant job losses. Last year, the operation produced approximately 30,000 tonnes of nickel and close to 1,000 tonnes of cobalt. However, with nickel prices hitting three-year lows and losing over 40% of its value on the market, the mine’s closure was deemed the best strategic move.
As major suppliers to the operation are notified to prepare for the shutdown, the community is left grappling with the loss of a significant economic driver. The closure serves as a stark reminder of the volatile nature of the mining industry and the impact it can have on local economies.
