Glimmer of hope for Ravensthorpe nickel mine revival as FQM pushes ahead with approvals for mine expansionAdrian RausoThe West AustralianSun, 19 October 2025 12:42PMEmail Adrian Rauso
Plans are afoot to expand the shuttered Ravensthorpe nickel operation while the battery metal’s price remains in the doldrums.
Toronto-based First Quantum Minerals this month received approval from the Federal Government to more than double the footprint of its idle nickel mine near WA’s south coast.
FQM in August lodged a proposal to increase Ravensthorpe’s development envelope 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.”
FQM declined to comment on-the-record about the proposed expansion.
The West Australian understands the Canadian company has forged ahead with the approvals process given the upgraded TSF would need to be built within 18 months of a potential Ravensthorpe restart.
The mine, which sustained more than 850 jobs at its peak, was placed into care and maintenance last May amid a nickel glut driven by Chinese-backed Indonesian supply.
Technological changes meant Indonesia’s low-grade nickel had become more economically viable. Nickel is used to manufacture stainless steel, alloys and electric vehicle batteries.
The commodity was worth about $US20,000 per tonne when Ravensthorpe was shut, tumbling from heights above $US31,000/t less than 18 months prior.
Nickel’s value has fallen even further since the mining operation came to a halt – currently trading at about $US15,200/t.
FQM is spending between $1.5 million and $2 million a month to keep Ravensthorpe ready for a potential revival, which could be its third restart in less than two decades.
WA’s nickel industry has been decimated over the past 18 months owing to the Indonesian supply boom. BHP’s sprawling Nickel West operation has been the biggest scalp.
Nickel West’s break-even cost was about $US20,000/t when BHP made its care and maintenance decision.
BHP Australia president Geraldine Slattery last July said the mining giant had “sufficient conviction” the nickel prices would stage a comeback towards the end of the decade and beyond, implying a predicted price materially above $US20,000/t.
Nickel West is currently up for sale with Andrew Forrest’s Wyloo rumoured to be among the suitors.
Wyloo mothballed its Kambalda nickel mines in May last year, just six months after purchasing them for $760 million from Mincor Resources.
Wyloo is currently mulling the viability of building a concentrator to make the Kambalda operation more efficient.
There is a low chance of nickel returning above $US20,000/t within the next five years, according to Macquarie Group. The Australian investment bank has pencilled in a price of $US19,000/t for 2029.
But Macqaurie noted that Indonesia will soon control about 70 per cent of the world’s nickel output and this significant geographic concentration could present a major supply shock risk.
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