Xstrata Nickel Australasia (XNA) announced that it will halt operations at Cosmos mine located in Western Australia and initiate a care and maintenance program in response to adverse market conditions, including a prolonged period of low nickel prices and a strong Australian dollar.
The company stated that it will also cut 150 jobs at XNA, adding that the Sinclair Nickel Operation, approximately 100 km south of Cosmos, is unaffected and continues to operate at normal capacity. Sinclair is expected to produce approximately 7,000 mt of nickel in concentrate in the current year.
Cosmos mine produced first nickel concentrate in April 2000. Since then, more than 2.9 million mt of nickel ore have been successfully mined at Cosmos to produce 127,000 mt of nickel in concentrate, including an estimated 4,200 mt year-to-date in 2012.