Mincor to cut output at Western Australian nickel mines

26 May 2015 (Last Updated May 26th, 2015 18:30)

Mincor Resources has announced plans to boost operating margins by implementing a revised mining plan at its nickel mines in Kambalda, Western Australia.

Mincor Resources has announced plans to boost operating margins by implementing a revised mining plan at its nickel mines in Kambalda, Western Australia.

The Australian company's latest plan is also aimed at increasing its focus on its new growth projects development and follows a recently completed review of its mining operations due to fall in the nickel price.

As part of its plans, Mincor, which has already stopped capital development at Mariners, plans to proceed with suspending capital development at Miitel and cease operations at both mines.

"Consensus forecasts for the nickel price are very strong and the changes announced will give us a solid foundation on which to build our next decade of profitable nickel mining in Kambalda."

Following this, during the period between June and November 2015, the company hopes to produce approximately 120,000t of ore at 2.8% nickel.

Through the second half of 2015, operations would be reviewed at both the mines to either recommence capital development and ramp-up production, or decreasing the output after November and focus on projects at Burnett, Cassini, Voyce, and Durkin.

According to the company, the new plan will see loss of around 50 jobs.

Mincor is currently performing detailed resource modelling on the Voyce, Durkin and Burnett projects, and is in the process of conducting conceptual scoping studies at Cassini.

Mincor Resources managing director David Moore said: "Our revised mining plan will optimise cash flows and allow us to rebuild production at both mines in due course, while giving us the scope to complete the drilling and evaluation of our four exciting new growth projects."

"Consensus forecasts for the nickel price are very strong and the changes announced will give us a solid foundation on which to build our next decade of profitable nickel mining in Kambalda."