The sudden closure of a lithium mine has put the jobs of 300 workers at risk, with global trade prices blamed for the move.
Mineral Resources Limited (MinRes) announced on Wednesday that it will cease operations at its Bald Hill lithium mine in Western Australia’s Goldfields region, 50 kilometers southwest of Kambalda.
The mine will reduce its staff to just 10 people to help move the facility into a “care and maintenance” shutdown starting this week.
in a statement to ASXThe listed company said it needed to stop mining the lithium-rich mineral spodumene due to the low prices it currently attracts.
MinRes said the move will “preserve the cash and value of the Bald Hill spodumene deposit for when conditions in the global lithium market improve.”
The miner does not rule out resuming operations at the site if lithium prices increase.
Mineral Resources Limited (MinRes) announced it will halt operations at its lithium mine in Bald, Western Australia (pictured), due to the low global lithium price.
“When the global lithium price improves to a level that incentivizes the restart of Bald Hill, the return to full operation is anticipated to take 4 to 6 weeks,” he said.
“During care and maintenance, MinRes will continue to optimize the mine’s plans, scale and operational structure ahead of any future restart.”
About 300 employees affected by the closure will be “prioritized” for other roles at the company’s other facilities in Western Australia.
The mine will begin to close this week and will maintain a minimum staff of just ten people.
“Where redeployment opportunities cannot be found, a layoff process will follow,” the company statement read.
MinRes expects the last shipment of minerals from Bald Hill to be sold in December.