PERTH (miningweekly.com) – Nickel miner Western Areas MD Dan Lougher has called on the industry to ignore market speculation and “get on with business”.
Speaking at the Paydirt Nickel Conference, in Perth, he said on Thursday that despite the negativity in the market around Indonesia’s ban on laterite exports and the closure of mines in the Philippines, nickel miners had to focus on operations.
“[The news] leaves an audience second guessing what will happen, but if you keep second guessing, you land in strife. Western Areas has taken a position of getting on with business, opening up new mines, finding new mines, doing exploration and cutting costs.”
Western Areas reported a slight decline in nickel-in-concentrate production for the three months to September 30, which reached 5 763 t, compared with the 6 321 t produced in the previous quarter.
Production was affected by lower grades.
However, Lougher pointed out that mine physicals were ahead of expectations, with the operations producing 153 192 t. Mill throughput was also one of the highest quarters on record, at 159 616 t.
A total of 33 829 t of concentrate was delivered for sale during the quarter under review, containing 5 187 t of nickel. The average realised nickel price reached A$6.54/lb, which was a significant improvement of the June price of A$5.44/lb.
Meanwhile, Western Areas has started a formal tender process for its nickel, as both its current offtake agreements with BHP Nickel West and Chinese group Jinchaun are expected to expire at the end of December.
Both contracts have been extended by one month.
However, Lougher noted that the expiry of these contracts represented an opportunity for Western Areas to test the market and demand for its blending concentrate.
The tender process will be completed by the end of the year.