PERTH - Panoramic Resources has halted operations at its Savannah nickel mine located in Western Australia, leading to job losses for approximately 140 workers. This decision comes as the company grapples with the sustained downturn in metal prices, which has eroded the mine's profitability.
FTI Consulting (NYSE:FCN), which assumed the role of administrator for Panoramic Resources in December, managed the mine's last shipment of nickel concentrate prior to the suspension.
The global nickel market is currently experiencing a surplus, largely due to increased production in Indonesia, which has further diminished the likelihood of a near-term recovery for the nickel industry.
In response to these challenging market conditions, Panoramic is actively seeking solutions to preserve its financial health. With the guidance of Treadstone Resource Partners, the company is considering various strategic alternatives, including the potential sale of its assets or a recapitalization effort.
These measures are aimed at navigating the current economic climate and securing a more stable future for the mining firm.
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