PERTH (miningweekly.com) – Mining activity at the Nifty copper mine, in Western Australia, has been suspended.

ASX-listed Metals X on Tuesday said that the company took the decision to suspend operations, following a review that was announced earlier this month as the mine continued to perform below expectations.

The company told shareholders that ore stocks would be processed during the course of the week, with the mine, processing facilities and infrastructure to then be placed on care and maintenance.

“This was a very difficult decision for the company. The people employed and contracting at Nifty and in Perth have worked incredibly hard. The company has also invested significant resources into improving productivity at the mine. Unfortunately, despite this, the operation is not where it was expected to be at this stage of the reset plan, and following the operational review, the increased uncertainty in the plan leaves us with no viable alternative,” said Metals X MD Damien Marantelli.

“Alongside preserving and growing value for our shareholders, the company’s priority is the welfare of our 320 staff and approximately 110 contractors who have worked tirelessly to improve the culture and operational performance at Nifty.

“The company is in discussions with people affected by these changes. We will require a small workforce to ensure the mine and associated infrastructure are appropriately maintained so that it can be quickly returned to production, but there will be approximately 290 staff losses, the cost of which has been fully incorporated into the initial cost of implementing the suspension of operations.”

Metals X is expected to spend an initial A$12-million to place the Nifty operation into care and maintenance, with a further A$7-million to be spent over the subsequent two months, and a further A$1.4-million monthly thereafter.

The final shipment of concentrate is expected to net between A$12-million and A$13-million in revenues, with much of the revenue expected during the December quarter, with Metals X noting that between A$14-million and A$15-million would be required to close out trade creditor accounts.

While operations at Nifty remain suspended, Metals X will process available drilling data to upgrade the resource base, to support planning for future mining operations. In addition, the company will also be reviewing the strategic options in relation to the Nifty project, and will appoint external advisers.