https://www.miningweekly.com
PROJECT|Resources|Operations
PROJECT|Resources|Operations
project|resources|operations

South32’s Colombia nickel mine faces strategic review amid market turbulence

The Cerro Matoso mine in Colombia

The Cerro Matoso mine in Colombia

22nd January 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

Font size: - +

The Cerro Matoso mine, in Colombia, a major ferronickel producer, is undergoing a strategic review in response to ongoing nickel market shifts that are putting pressure on prices.

South32, the mine’s owner, announced on Monday that the review aimed to “evaluate options to enhance its [Cerro Matoso's] competitive position”.

According to the company’s second-quarter production report, price realisations for its ferronickel product currently exhibit a 29% discount to the LME nickel index, reflecting the impact of structural changes in the nickel market on both nickel prices and discounts to its ferronickel product.

Nickel prices have dropped sharply over the past year, as new supply from Indonesia entered the market. Several mines across Australia have had to restructure.

Last week, BHP announced that it was evaluating options at its Nickel West mine and First Quantum scaled back operations at Ravensthorpe. Panoramic Resources’ administrators are shutting down the Savannah project, while IGO has flagged impairments at its Cosmos nickel project.

First Quantum has said it expects the downturn in nickel prices to last three years.

Cerro Matoso's payable nickel production decreased by 10% to 18 300 t in the December 2023 half-year, but is on track to produce about 40 500 t in the full year, with higher nickel grades expected in the June 2024 half-year.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Willard
Willard

Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

On-The-Air (17/05/2024)
On-The-Air (17/05/2024)
17th May 2024 By: Martin Creamer
Magazine round up | 10 May 2024
Magazine round up | 17 May 2024
17th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.204 0.243s - 92pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: