First Quantum Minerals open to offers on Ravensthorpe nickel mine as BHP shops around Nickel West

One of the biggest mines caught up in the implosion of Western Australia’s nickel industry could soon have a new owner. Canada’s First Quantum Minerals in recent weeks has been actively assessing options to realise value for its 70 per cent stake in the mothballed Ravensthorpe nickel laterite operation, according to industry sources. The mine in the Esperance region sustained more than 850 jobs at its peak, but has been in care and maintenance since July 2024 amid a nickel glut driven by Chinese-backed supply from Indonesia. An FQM spokesman declined to comment on the record when asked about the sale rumours. However, The West Australian understands that FQM’s ownership of Ravensthorpe has become a key part of a broader strategic review the Toronto Stock Exchange-listed company is conducting into its global portfolio. A complete divestment or partial sell down of its operating stake in Ravensthorpe is believed to be on the table. Front-runners for the asset would be Rio Tinto target Glencore, Andrew Forrest’s Wyloo, plus South Korean steel and renewable battery manufacturing heavyweight POSCO. Glencore and Wyloo own nickel mines in WA, while POSCO has the residual 30 per cent interest in Ravensthorpe and an offtake deal for the mine’s output. POSCO recently whipped out its wallet for WA assets, acquiring a 30 per cent share in Mineral Resources’ two operating lithium mines for $1.2 billion in November. Any potential Ravensthorpe buyers would have appraised BHP’s sprawling Nickel West division recently. BHP opened up a data room for its idle Nickel West in October and is currently running a formal sales process. FQM’s strategic review of Ravensthrope also comes amid a recent rebound in nickel prices. The metal’s value has jumped from about $US14,100 per tonne in mid-December to currently sit above $US17,500/t. The price spike has been fuelled by Indonesia’s government flagging quotas on nickel production to ease a self-inflicted supply glut, although details of the quota are yet to be revealed. Once the details are disclosed, analysts believe the nickel price could move sharply in either direction. Nickel was changing hands for about $US19,100/t when FQM made its decision in April 2024 to shutter Ravensthorpe. FQM is spending between $1.5 million and $2 million a month to keep Ravensthorpe ready for a potential revival, which would be its third restart in less than two decades. FQM in October received approval from the Federal Government to increase Ravensthorpe’s footprint from 144 hectares to 387 hectares for an expansion of the Southern mine pit and processing area. “This expansion will accommodate an extension of the existing tailings storage facility,” a report prepared on behalf of FQM stated. “This extension (of the TSF) is critical for the ongoing operations of the Ravensthorpe nickel project, in particular to store the tailings produced from the processing of additional ore associated with the expansion of mining activities.” An upgraded tailing storage facility at Ravensthorpe would need to be built within 18 months of a mining restart. BHP offloaded Ravensthorpe to FQM in 2009 for $376m, less than two years after completing construction on the mine at a cost of more than $2 billion. POSCO paid about $310m for its 30 per cent stake in 2021.