(In United States dollars, except where noted otherwise)
TORONTO, Aug. 9, 2017 /CNW/ - First Quantum Minerals
Ltd. ("First Quantum" or the "Company", TSX Symbol "FM") today
announced its intention to suspend operations at its
Ravensthorpe nickel operation, in Western
Australia, and place it on care and maintenance at the
beginning of September 2017 due to
the persistently low nickel price.
It is anticipated that full care and maintenance will be in
effect by early October 2017.
CEO'S COMMENTS
Philip Pascall, Chairman and CEO,
said "This decision is disappointing to us. Ravensthorpe is an
excellent operation with an outstanding workforce and supportive
community but the continuing depressed nickel market conditions,
over some years, leaves us no option.
"Over the next few weeks we will work closely with our employees
and key contractors to mitigate the impact and manage carefully the
staged shutdown of operations. We will be offering assistance
to employees in seeking further employment opportunities.
"We extend our sincere thanks to our entire workforce, local
community, all levels of Government and our partners in the mining
sector who have assisted Ravensthorpe since its restart in
2011."
ESTIMATED COSTS
The cost to suspend operations and enter care and maintenance is
estimated at $10 million with
subsequent annual maintenance of approximately $5 million. The permitting process for the
Shoemaker Levy orebody is planned to continue along with regular
review of the market conditions for potential restart of
operations. Restart cost, should favorable conditions prevail, is
estimated at $10 million.
On Behalf of the Board of Directors of First Quantum Minerals
Ltd.
G. Clive
Newall
President
SOURCE First Quantum Minerals Ltd.