PERTH (miningweekly.com) – Nickel miner Western Areas has maintained its production outlook for 2020, with the company reporting a solid quarter in the three months to March.
Total nickel mined during the quarter reached 5 896 t, which was in line with the 5 849 t produced in the previous quarter. Total nickel-in-concentrate produced declined slightly from the 5 399 t produced in the December quarter to 5 154 t.
“Despite the various challenges encountered during the quarter, our Forrestania operations produced another reliable operating result while also delivering a backlog of concentrate from the prior quarter. At our new Odysseus mine, significant infrastructure work was completed, including the shaft headframe boxcut, which is now prepared for civil concrete foundation works,” said MD Dan Lougher.
Nickel sales for the quarter increased significantly from the 3 991 t sold in the December quarter to 3 456 t; however, Lougher noted that nickel prices fell during the March quarter as a result of Covid-19 economic and financial impacts across the global market.
He noted that the accompanying fall in the Australian dollar over the same period has, however, cushioned the impact of the nickel price movement.
Nickel prices continue to be volatile; however, some early signs of stability are starting to become evident, and the closure of various international nickel operations, owing to Covid-19-related suspensions or lower prices, is expected to assist in rebalancing the wider nickel market.