Subiaco-based Poseidon Nickel Ltd will sack at least nine workers after the company said yesterday it had suspended work at the underground Mt Windarra Nickel Project in the Goldfields.
"Given the rapid progress of this decline refurbishment program while Poseidon proceeds with prefeasibility studies into the optimum development scenario for the project, the company has decided to temporarily suspend underground rehabilitation activities at the end of October," the company said in a statement.
"Poseidon believes this is the most sensible course of action in the current period of global uncertainty and will ensure the optimum use of the company's cash reserves while development studies for Windarra continue."
Poseidon has rehabilitated some 700 metres of the Mt Windarra decline, in the process confirming that the decline remains in good condition, which suggests refurbishment expenditure can be kept to a minimum.
The difficult mine, which could produce 20,000 tonnes of nickel a year, has had a number of companies try and exploit it since the early 1970s, with Poseidon having officially decommissioning the mine in March this year.
The company said it remained "extremely confident" in the outlook for the Windarra Nickel Project and would provide further updates on progress of the prefeasibility study "as results come to hand".
Following the announcement to temporarily suspend rehabilitation works at Windarra, investors sent shares down 7 cents to 24.5 cents.
