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Norilsk halts Lake Johnston operations

26th April 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Russian nickel major Norilsk has suspended mining at its Lake Johnston operations, in Western Australia, laying off 60 employees.

The company said this week that under the current nickel market trend, Norilsk was implementing a policy of optimising production site operations, ensuring maximum effective use of in-house capacities.

It added that operations that were not fully integrated into its production chain, such as the Lake Johnston operation, did not provide sufficient profitability levels.

Lake Johnston was restarted in July 2011 after operations were suspended in 2009 as a result of the global financial crisis.

Norilsk said this week that a possible decision to relaunch Lake Johnston could be based on the metals market situation and geological investigations conducted on the licensed plots in the region.

Meanwhile, the Russian major said its focus continued to be on developing Honeymoon Well, one of the largest sulphide ore deposits in the world, while at the same time upgrading the Cawse hydrometallurgy complex.

In total, the project may secure about 40 000 t/y of nickel hydroxide with high refining grades.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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