First Quantum Minerals has reduced its nickel production guidance for 2024 after deciding to mothball its Ravensthorpe operation earlier this year due to market instability. Despite maintaining its copper and gold production targets, the Toronto Stock Exchange-listed miner has adjusted its nickel targets to align with the year-to-date production at Ravensthorpe.
The Ravensthorpe open-pit nickel mine and processing plant were moved to care and maintenance in May after an initial suspension of operations. First Quantum cited depressed nickel prices and high operating costs as reasons for the decision, challenges also faced by other Western Australian nickel miners in recent months.
Nickel miners such as IGO, Wyloo Metals, Panoramic Resources, and BHP Nickel West have similarly scaled back or shuttered operations due to weak market conditions for the battery metal.
The closure of First Quantum’s sole WA operation has significantly impacted the nearby town of Hopetoun, where most of its workforce resided. Approximately 650 people were employed at the Ravensthorpe project, with about 330 employees affected by its closure.
In its quarterly results, First Quantum stated, “The company continues to support its personnel and local regional communities through the change in circumstances at Ravensthorpe.”
In its June quarter results, First Quantum reported nickel production from Ravensthorpe totaling 1,253 contained tonnes of nickel, down from 3,740 tonnes in the previous period. The company has revised its Ravensthorpe production guidance to 5,000 contained tonnes of nickel, down from the previous target of 12,000 to 17,000 tonnes.
First Quantum has another nickel operation in Zambia, which produced 6,147 tonnes during the June quarter. This project reached commercial production during the period, with the ramp-up continuing. Production guidance for this project has been narrowed to 17,000 to 20,000 contained tonnes of nickel, from the previous range of 10,000 to 20,000 tonnes.
The company has estimated the care and maintenance costs for Ravensthorpe to be $US5 million per month for the next quarter (its third quarter), expected to decrease to about $US2 million per month from the fourth quarter onwards.
The miner is preparing and cleaning the plant and equipment at Ravensthorpe for care and maintenance, with completion expected early next quarter. Preventative maintenance plans are being executed, with equipment being run and monitored to maintain it in good working condition.
Additionally, First Quantum has reached a shareholder rights agreement with Jiangxi Copper, its major Chinese customer and backer, which sets conditions on Jiangxi’s ability to buy or sell shares without consent. 
