Panoramic forced to mothball Savannah mine due to virus restrictions
Virus restrictions aimed at protecting remote indigenous communities force Panoramic to mothball WA nickel mine.
Troubled West Australian nickel producer Panoramic Resources says it has mothballed its Savannah nickel mine in the Kimberley region over the impact of coronavirus lockdowns, saying it cannot continue to operate the mine in the face of the restrictions.
While most mines in WA have won exemptions from internal movement restrictions and increased the length of work shifts to reduce the number of people moving within the state, the remote Kimberley has tougher rules because of fears the virus could devastate vulnerable indigenous communities.
Panoramic said in late March it believed it could operate the mine despite the restrictions, but now says it has been forced to mothball Savannah.
“There are currently no cases of COVID-19 reported at the Savannah Nickel Mine. However, the situation is rapidly evolving and has changed materially since the company provided its March 27, 2020 COVID-19 update,” Panoramic said in a statement.
“In particular, the pandemic is adversely impacting operations, including transportation, availability and cost of personnel, equipment and supplies at site, and controls at site, particularly given the heightened sensitivity within the Kimberley region and communities close to the operation.”
Panoramic suspended trading in its shares ahead of the announcement, and said it is still seeking to resolve ongoing funding requirements to complete the ramp up of Savannah during its period in mothballs.
“Essential services, safety and environmental monitoring will continue, with the underground operations to cease in an orderly manner and processing of ore expected to cease by the end of this week,” the company said.
Early this year Panoramic rejected a $216m hostile takeover offer from Independence Group, saying it undervalued the company, and instead opted for a $31m capital raising at 30c a share.
Panoramic last traded at 12c.
