First Quantum Minerals has announced the closure of its Ravensthorpe nickel operation in Western Australia, citing unsustainable financial models, elevated operational costs, and a dim forecast for nickel prices in the coming years. The decision follows an initial halt in mining activities in January, with the company originally planning to process existing stockpiles until potentially resuming operations in 2025.
The shutdown, effective May 1, will lead to the elimination of approximately 330 jobs, impacting Ravensthorpe and the nearby community of Hopetoun, where the mine serves as the largest employer. This decision marks another chapter in the operation’s challenging history, which saw previous suspensions in 2009 and 2017 due to high operational costs and market conditions. Those closures led to significant job losses, with 1,800 and 450 positions cut, respectively.
In 2022, Ravensthorpe produced about 30,000 tonnes of nickel in mixed hydroxide precipitate and nearly 1,000 tonnes of cobalt. However, nickel prices have remained low, hovering around three-year lows and closing at $8.7 per pound on Monday. The metal’s performance has been lackluster, with over a 40% drop in value on both the London and Shanghai exchanges last year, making it the worst performer in the base metals complex. 
