550 jobs for nickel mine restart

The restart of the Ravensthorpe nickel project has officially commenced amid surging prices of the commodity, as owner First Quantum Minerals launched a recruitment drive to fill at least 350 direct roles at the mine.

Canada-based First Quantum said in addition to the approximately 350 people it would employ at the nickel laterite operation, it anticipated there would be up to a further 200 roles with its mining contractor.

The company has previously indicated to the state government and shareholders that it intended to start the mine and processing plant in early 2020.

First Quantum is initially recruiting in the Great Southern and Goldfields Esperance regions to fill a wide range of positions, including operators and tradespeople, particularly electricians, boilermakers and fitters.

Business News understands First Quantum has taken out advertisements in several WA regional newspapers and job websites seeking workers for the operation.

The company intends to operate regular bus services from Albany and Esperance to enable employees to reach the site without driving.

It will also provide opportunities for relocation to company housing at the coastal town of Hopetoun.

It said the start of the operation was likely to result in a further 1,800 positions created as a multiplier effect across southern Western Australia.

First Quantum placed the mine on care and maintenance in October 2017.

It employed around 450 workers directly at the operation prior to the shutdown.

BHP originally spent $US2.1billion to construct the mine and processing plant, which was opened in late 2008 amid persistently low nickel prices.

It was closed down shortly after in January 2009, costing 1,800 workers their jobs, before First Quantum picked up the asset for just $US340 million in early 2010.

It achieved commercial production in December 2011.

In October 2017, when the mine was placed into care and maintenance, nickel spot prices were around the $US10,300 per tonne mark, according to the London Metals Exchange.

The nickel price has risen rapidly from around $US10,435/t at the start of this year to $US18,620/t yesterday.

The substantial growth is on the back of reports that Indonesia, the world’s biggest nickel ore producer, will ban exports of the product from January 2020.

This was two year than initially flagged, as the country aims speeds up efforts to process more of its resources within its borders.

Additionally, global stockpiles of nickel are at low levels.

The nickel spot price was last around the $US18,000/t mark in late 2014.