Nickel miner Panoramic Resources has lifted their voluntary trading halt and announced the Savannah resource will be moved onto care and maintenance, while a redundancy phase commences.
The company also announced that a “significant portion” of the workforce at Savannah and at the company’s Perth headquarters will be made redundant in the coming months, with 50 positions to go today.
The company said the decision to issue redundancies was regrettable and unfortunate, but unavoidable in the face of the current US nickel price environment.
“The company would like to take the opportunity to thank all Panoramic employees for their commitment and dedication, especially those that will be made redundant as a result of the operational changes being implemented,” a company announcement read.
The decision to suspend operations at Savannah means the extended concentrate sales agreement with Sino Nickel will be terminated, however Panoramic said both Sino and parent company Jinchuan Group were “aware of our intentions and remain supportive of the Savannah Project and the company.”
Last year Panoramic shut down the Lanfranchi nickel mine, which resulted in 150 job losses.
Panoramic maintains there is potential to add significant mine life to the Savannah Project, with the Savannah North scoping study showing a 6 million tonne resource, which would add nearly 8 years to the mine life.
Panoramic will maintain exploration at the Dave Hill and Wilson intrusions, south of the Savannah mine, and further drilling will go ahead at Savannah North later this year.