Independence Group (IGO) has announced plans to cut down production and spending targets at its Long nickel mine in Western Australia in order to battle the unfavourable nickel market conditions.
According to the ASX Announcement, the company will cut staff numbers at its Long nickel mine where 28 workers will be made redundant.
The company plans a cost reduction of between 11% and 13%, while contained nickel production will be approximately 8,500 to 9,000 tonnes for FY2016 (previously 9,000 to 10,000 tonnes).
Independence said sustaining and exploration capital expenditure had been reduced to a range between $16 million and $20 million, down from an original forecast between $23 million and $26 million.
“We deeply regret the impact that these changes will have on our people and it is a decision that has not been taken lightly. IGO remains committed to the Kambalda community and the broader Goldfields community. These steps were necessary in the current environment to ensure IGO continues to generate sustainable margins and returns on capital from the Long Operation,” said IGO’s Managing Director, Peter Bradford.
Independence Group mines gold, nickel and copper, zinc and silver from three mines in Western Australia.