These mines, according to the company, have been operating under increasing cost pressures for some time and a significant increase in the cost of inputs coupled with a steep decline in nickel prices led to the decision to curtail operations.

Waterloo, which is located 40 km south of Leinster, has been underground mining since 2006 with ore being trucked and processed at BHP Billiton’s Leinster Nickel Operation. Silver Swan, the underground operation at Norilsk’s Black Swan nickel project, is located 53 km north east of Kalgoorlie and has been underground mining since 1996.

Collectively, these two mines produced approximately 10,000 tons of nickel contained in product over the last 12 months. Norilsk Nickel said this decision will not affect the company’s open-cut operations at Black Swan nor the Lake Johnston operation, which continue to perform in line with expectations; and that it is considering a range of options for its employees at the shuttered operations.