The plight of the Ravensthorpe nickel mine was one of the most dramatic stories in the mining industry last year.
BHP Billiton opted to shut the mine down in January 2009, after less than a year of full production, after the falling nickel price and processing problems became too prohibitive.
More than 1800 workers lost their jobs as a result of the closure and the company lost $3.6 billion through depreciation.
The future of both the mine and the nearby towns of Ravensthorpe and Hopetoun were very uncertain, and it looked like the abandonment would be the final chapter in a short but ill-fated history.
The company originally invested around US$1 billion to develop the mine, but by the time this was completed in 2007, the costs had blown out to US$2.2 billion.
The mine was also plagued by several delays throughout construction and commissioning and the official opening was held back to the end of May 2008.
BHP eventually sold the mine to Canadian company First Quantum Minerals in December last year for US$340 million.
The new owners set out its plans for the mine when it finalised the deal in February this year.
The company will spend US$150 million over the next 12 months to upgrade the mine’s front-end processing facilities.
This includes the construction of two new crushing plants and modifications to the beneficiation, conveying, stockpile and reclaiming facilities.
The mine’s general manager Rudi Badenhorst believes the work is running to schedule.
“The original timeframe for modifications, commissioning and ramp-up is unchanged,” he told Australian Mining.
“We expect the ramp-up to be complete in the second half of 2011.”
The nickel ore at the site is incredibly difficult to process and was one of the main reasons BHP’s production fell short of expectations.
“First Quantum has engaged engineers to work on design modifications to remedy the problems experienced with processing the ore, and the plant is being systematically tested and maintained in readiness for recommissioning,” Badenhorst said.
“The company has also started recruiting key workers for the operation, with a focus on them living in the region, to contribute to a stable workforce and a strong community.
“We have got about 100 people onsite at the moment.
“With permanent recruitment starting now, we will steadily build up to operational numbers of about 600 in full production.”