Ravensthorpe Nickel Mine
| Company type | Mining operation |
|---|---|
| Industry | Mining, Nickel extraction |
| Founded | 2008 |
| Headquarters | Ravensthorpe , Australia |
Area served | Western Australia |
| Products | Nickel, Cobalt |
Number of employees | 420 (2024) |
The Ravensthorpe Nickel Mine is a nickel extraction site and hydrometallurgical facility situated at Bandalup Hill, to the east of Ravensthorpe, Western Australia.
Originally constructed by BHP Billiton, the mine ceased operations in January 2009 after less than a year due to a sharp decline in nickel prices. It was acquired by First Quantum Minerals in December 2009 and recommenced production in December 2011 following an 18-month period of upgrades. After another downturn in nickel prices prompted a care and maintenance phase starting October 2017, mining activities resumed in January 2020. In May 2021, POSCO secured a 30% ownership stake.
History
Mining activities around Ravensthorpe trace back to gold discoveries in 1898, with copper extraction continuing until the 1970s. From 1901 until 1925, a railway connected Ravensthorpe with the port town of Hopetoun.
In 2002, BHP Billiton initiated a feasibility study for establishing a nickel and cobalt mining operation alongside a processing plant costing A$1.4 billion, located east of Ravensthorpe. The project received approval in 2004, and by late 2007 the Ravensthorpe Nickel Project was commissioned, producing its first nickel output by October and achieving 5,000 tonnes by December. The facility was officially inaugurated in 2008 with an anticipated annual production capacity of 50,000 tonnes.
Due to the global financial crisis and a substantial drop in nickel prices—from US$50,000 per tonne in May 2007 to below $11,000 at closure—BHP halted production in January 2009. This shutdown resulted in the loss of approximately 1,800 jobs and had a significant negative effect on surrounding communities.
On 9 December 2009, BHP agreed to divest the mine to First Quantum Minerals for US$340 million—a lower offer compared to competitors but with fewer contractual conditions. The transaction was completed on 10 February 2010.
First Quantum then spent eighteen months enhancing ore processing infrastructure, installing new crushers and storage ponds among other improvements. Recommissioning activities began mid-2011, with nickel production restarting by October. Operational challenges encountered by BHP were addressed during this period.
Mining operations resumed again in January 2020. Subsequently, POSCO acquired a 30% shareholding for $240 million in May 2021.
In January 2024, mining activities were suspended once more due to weak nickel market conditions, leading to a workforce reduction of about 30% from an original headcount of 420 employees; meanwhile, stockpile processing was expected to continue for up to two years before mining could recommence.
By April 2024, Ravensthorpe Nickel Operations declared a fourth closure and transition into care and maintenance status, resulting in an additional reduction of roughly 330 jobs.
Mineral reserves
The project encompasses five ore deposits: Halleys, Hale-Bopp, Shoemaker-Levy, Nindilbillup, and Shoemaker-Levy North. As of 31 December 2017, proven and probable reserves amounted to 197.2 million tonnes grading at 0.6% nickel and 0.03% cobalt. The Shoemaker-Levy deposit is the largest among them, containing approximately 88% of these reserves.
First Quantum forecasted an annual nickel output of around 39,000 tonnes during the initial five years and averaged about 28,000 tonnes over the mine’s projected life span of 32 years. Commercial production officially started on 28 December 2011, yielding 32,884 tonnes in the year following. For context, BHP Billiton’s production totaled approximately 14,000 tonnes during its nine-month operational period prior to placing the plant into care.
Persistent low nickel prices falling below operational costs compelled First Quantum to place the mine under care and maintenance from October 2017 onwards, which led to most employees being laid off while retaining a minimal maintenance crew onsite. By April 2019, First Quantum indicated that production could potentially restart in early 2020 if market conditions improved.
In the year 2021, the mine produced contained nickel amounting to 16,818 tonnes (with payable nickel at approximately 14,018 tonnes).
Atmospheric leach tank failure
On 14 December 2014, corrosion led to the structural collapse of an atmospheric leach tank wall, causing a spill that remained confined within the plant's bunded perimeter. Approximately of acidic slurry was released, which inflicted damage on transformers, electrical substations, and steam turbine generators. Following the incident, the Department of Mines & Petroleum halted plant activities, resulting in a 49-day mine shutdown. The operator admitted guilt for not ensuring a safe workplace and received a fine of A$40,000.