Singapore 30/10/2015 - Mirabela Nickel will reduce nickel production at its Santa Rita mine in Bahia, Brazil by 33 percent starting late October amid falling nickel prices, the Australia-listed company said on Friday.
This will result in annualised nickel in concentrate production at the mine falling to 12,000 tonnes from 18,000 tonnes.
The reduction is to help the company manage the operations at as close to breakeven cash position as possible over a 15 month period from October 2015 till December 2016, it said.
Due to the production cut, Mirabela’s nickel output guidance for 2015 is lowered to 14,500-16,000 tonnes from 16,500-18,000 tonnes.
Additionally, Mirbela said its wholly owned Brazil subsidiary, Mirabela Mineração do Brasil Ltda (MMB) which manages the mine, has terminated the employment of approximately 220 employees – which makes up 33.7 percent of total MMB staff - and around 180 contractors at mine.
“The reduction of the workforce at the Santa Rita mine forms part of MMB's decision to decrease production output at the Santa Rita mine in order to reduce operating costs during the current sustained climate of depressed nickel price,” it said.
Mirabela was placed under voluntary administration on September 24 this year.