Factbox: Australia's nickel producers reel from supply glut

Panoramic Resources

17/01/2024 01:26

MELBOURNE, Jan 17 (Reuters) - A sharp slide in nickel
prices over the past year, driven by a jump in Indonesian
supply, has hit Australian nickel producers, leading to mine
closures, production cuts and writedowns in recent months.
    Australia is the world's fifth biggest producer of mined and
refined nickel, with output led by BHP Group  BHP.AX .
    Following are moves by nickel producers and developers to
cope with the slump:
      
    * Canada's First Quantum Minerals  FM.TO  on Monday said it
will cut jobs and production at its Ravensthorpe mine in
Australia due to a "significant" downturn in prices that it
expects to last three years.
    * Panoramic Resources  PAN.AX  went into voluntary
administration in December. On Jan. 8, its administrators said
operations at its Savannah nickel project would be suspended as
the "prospect of achieving a near-term turnaround of operations
and finances is low". The project remains up for sale.
    * Battery materials producer IGO  IGO.AX  flagged in
December it expects to book a further impairment to its Cosmos
nickel project when it reports on Jan. 31, adding to an almost
A$1 billion writedown in the 2023 financial year.
    * The world's biggest listed miner BHP  BHP.AX  is assessing
options for a major smelter renewal and a mine expansion in
Australia while it builds the West Musgrave mine it acquired
with its $6.4 billion takeover of Oz Minerals.
    

    

 (Reporting by Melanie Burton; Editing by Sonali Paul)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))