The Ravensthorpe mine in Western Australia, owned by Canadian miner First Quantum, is set to be put into care and maintenance, resulting in the loss of about 330 jobs. The decision was made due to significant losses incurred by the operation despite efforts to transition to a new operating strategy. The sudden shutdown of production comes as a blow to the local community, as the mine is a major employer in the area. The company cited the recent financial relief provided by the Western Australian government as insufficient to prevent the closure.
The closure of the Ravensthorpe nickel operation will have a significant impact on the employees and their families, with 330 workers set to be made redundant. In addition, about 90 workers employed by mining contractor MACA are also expected to lose their jobs. The impact of the closure will further add to the challenges faced by the towns of Ravensthorpe and nearby Hopetoun, which previously suffered when the operation was shut down in 2009 by previous owner BHP after just a year of operation. The closure of the mine highlights the volatility of the nickel market and the challenges faced by the industry.
The price of nickel, which is primarily used in the production of stainless steel and is increasingly being used in batteries, has shown signs of recovery in recent weeks. However, the price remains volatile, and despite the recent increase, it has not been enough to save the Ravensthorpe mine from closure. In 2023, the price of nickel fell by about a third, while production increased by 16%, leading to financial losses for the operation. The closure of the mine reflects the challenges faced by the nickel industry globally, as market conditions continue to fluctuate.
The closure of the Ravensthorpe mine highlights the broader impact of cheap nickel imports from Indonesia on the Australian industry. The influx of cheap nickel has put pressure on local producers, leading to job losses and mine closures. The Australian government has faced calls to take action to protect the local industry, but so far, little has been done to address the issue. The closure of the Ravensthorpe mine is a stark reminder of the challenges faced by the Australian nickel industry and the need for measures to support local producers.
The closure of the Ravensthorpe mine is expected to be completed by late May, with all production to cease at that time. The company’s decision to put the mine into care and maintenance is a result of the significant losses incurred by the operation, despite efforts to transition to a new operating strategy. The closure of the mine will have a significant impact on the local community, with the loss of hundreds of jobs. The closure of the mine also highlights the challenges faced by the nickel industry globally, as market conditions remain uncertain.
Overall, the closure of the Ravensthorpe nickel operation in Western Australia is a significant loss for the local community and the Australian nickel industry. The decision by First Quantum to put the mine into care and maintenance reflects the challenges faced by the industry, including the impact of cheap nickel imports from Indonesia and the volatility of the global nickel market. The closure of the mine highlights the need for measures to support local producers and protect jobs in the industry. The loss of hundreds of jobs at the Ravensthorpe mine is a reminder of the human cost of the challenges facing the nickel industry and the importance of finding solutions to support the sector.
