First Quantum, a Canada-based mining company, has announced plans to scale back operations at its Ravensthorpe nickel mine in Australia. The decision comes as a result of falling nickel prices due to an increase in low-cost supply and weaker demand. The company will suspend mining at the Shoemaker-Levy deposit and bypass both high-pressure acid leach circuits. Instead, existing ore stockpiles will be processed through atmospheric leach units, reducing mining processing costs but resulting in slightly lower recoveries.
Despite the decrease in production and the impact on grades and recoveries, the adjusted strategy aims to preserve the higher-grade Shoemaker Levy orebody until nickel prices recover. First Quantum’s priority at Ravensthorpe is to improve margins while maintaining the integrity of the mine for future full-capacity operations.
This decision comes in the midst of challenges faced by the nickel industry, with Panoramic Resources also suspending its flagship mine and entering voluntary administration. However, First Quantum remains committed to its Zambian operations and is actively exploring initiatives to strengthen its balance sheet.
To navigate the suspension of production at its Cobre Panama mine, First Quantum has announced several balance sheet initiatives, including the suspension of dividends, reduction of capital expenditure, and discussions with banks to address and extend its loan facilities. The company is also considering the sale of smaller mines and interests in its larger mining assets.
Although First Quantum experienced a decrease in copper production in 2024, it expects an increase in nickel production from its Trident Enterprise mine in Zambia. The company projects a rise in nickel output in the coming years.
As the mining industry faces volatility and challenges, First Quantum is taking decisive actions to conserve capital, lower costs, and strengthen its financial position. These steps will enable the development of the Kansanshi S3 expansion and provide the company with greater flexibility in managing its balance sheet.
The source of the article is from the blog elblog.pl