2024-01-15 17:56:41
Canadian mining company First Quantum Minerals said on Monday it would reduce operating activities at its nickel mine in Australia by suspending mining operations in the Shoemaker Levy ore body.
The move follows a “significant” drop in nickel prices forecast for 2023, the company added.
The decision to close these mines will result in a 30% reduction in the company’s workforce.
The Raventhorpe mine in Australia is jointly owned by First Quantum and South Korean company POSCO. For the nine months ending September 2023, the mine generated revenue of $279 million, with an operating loss of $66 million.
First Quantum suffered a major blow in Panama, where it was ordered to close one of the world’s largest copper mines last December. The company has started talks with investors to raise funds to improve its financial situation.
Ratings agency Fitch warned that if the company’s Panama mine was permanently closed, First Quantum’s net debt ratio in 2024 would increase to more than 5 times earnings before interest, taxes, depreciation and amortization, which could result in a violation of the restrictive covenants.
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