Advertisement

Ravensthorpe jobs remain

First Quantum Minerals has delivered some post-Christmas cheer to 600 WA workers at Ravensthorpe, confirming yesterday it will restart the operation after a burst acid tank forced its closure in mid-December.

First Quantum said yesterday Ravensthorpe would be "back in production shortly", albeit at a substantially reduced rate.

Ravensthorpe was shut down on December 14 after a 20m high atmospheric leach tank burst, spilling acidic slurry into a contained area around the tanks. The spill damaged a power substation, knocking out power to the entire facility.

It is understood the clean up of the immediate area was completed this month. The Department of Mines and Petroleum has cleared First Quantum for a limited return to work at Ravensthorpe. An investigation into the cause of the incident is ongoing.

The ruptured tank is one of eight at the facility used to process a secondary ore stream as well as slurry from the main high-pressure acid leaching process.

First Quantum flagged a reduced output at the facility for the rest of the year. Ravensthorpe produced 36,445 tonnes of nickel in 2014, despite the December closure.

That result was towards the upper end of its 32,000t to 37,000t guidance.

Output at Ravensthorpe is likely to fall by 17.5 to 35 per cent in 2015, according to First Quantum. It said it expected the facility to produce 24,000t to 30,000t of nickel this year.

The uncertainty over the cause of the rupture means Ravensthorpe is unlikely to return to atmospheric leaching in the remaining tanks in the short term. That means the secondary ore will remain unprocessed and recovery rates from the main high-pressure acid leaching circuit will be reduced.

A First Quantum spokesman said he could not comment on details of the restart because the company was still finalising its plans.

First Quantum did not put a cost on the incident and it did not give any indication of its likely 2015 production costs at Ravensthorpe.