Photo by: Bloombeg
PERTH (miningweekly.com) – Diversified miner Independence Group has revised its mine plan and cut staff numbers at its Long operation, in Western Australia, in response to the current weakness in the nickel price.
The ASX-listed company said on Wednesday that some 28 staff members would be made redundant at the mine, as some mining activities at the mine would be discontinued.
Future mining activities at Long would focus on longhole stoping, supported by twin-boom jumbo development. Other mining methods and activities, including mechanised cut-and-fill, air-leg and single-boom jumbo, would be discontinued.
The new mine plan would result in a cost reduction of between 11% and 13%, with cash costs expected to be between A$3.5/lb and A$4/lb, while contained nickel production would decline from the original 9 000 t to 10 000 t target, to between 8 500 t and 9 000 t.
Independence MD Peter Bradford said the company regretted the impact that the changes would have on its staff, adding that the decision was not taken lightly.
“Independence remains committed to the Kambalda community and the broader Goldfields community. These steps were necessary in the current environment to ensure Independence continues to generate sustainable margins and returns on capital from the Long operation.”