Fortescue cuts 700 jobs, slows down green hydrogen plans
Fortescue is revising plans to become a major green hydrogen producer, citing high energy costs as main reason for restructuring and layoffs.
KordaMentha plans to have sold the Avebury nickel mine in Tasmania by Christmas, a partner for the insolvency firm said on Monday, after missed debt repayment deadlines and a falling nickel price tipped the operation into receivership.
Australia’s Mallee Resources, which owns and operates the mine, appointed receivers earlier this month after it ran into production problems during its ramp up and as nickel prices fell. It was unable to secure alternative funding as debts to commodity trader Hartree Partners became due in July and August.
The mine in the western part of the Australian state of Tasmania continues to operate as normal, KordaMentha partner Scott Langdon told Reuters.
“We are going to run a sales process to kick off very shortly and we are hoping to have it concluded by Christmas,” he said, adding that as part of the sales process, current supply agreements may be renegotiated.
Mallee Resources’ largest shareholder, Hartree Partners, is a mid-size commodities group best known for energy trading but that has been expanding into base metals concentrate trading. It has exclusive rights to market the mine’s nickel.
“Hartree continues to support the Avebury operation and market the concentrate produced during this process,” Hartree said in an emailed response to Reuters.
Hartree had supplied $31 million in outstanding debt facilities according to a company statement in July. The trading house had offered several debt extensions while negotiations to find an alternative financier were underway.
Shareholders in July voted down a proposal that would have seen Hartree take a majority stake in the miner in return for additional funding. LME nickel prices have dropped 13% since Avebury restarted in July last year.
(By Melanie Burton; Editing by Sonali Paul, Stephen Coates and Alexander Smith)
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