Norilsk Nickel, the Russian diversified mining company says in enacting its program whereby it pushes to minimize production costs, it has followed the schedule in suspending operation of its Lake Johnston enterprise based in Australia.

Under current nickel market trends the company implements a policy of optimizing production site operations ensuring maximum effective utilization of in-house capacities. “Enterprises that are not fully integrated in the company’s production chain (as Lake Johnston) do not provide sufficient profitability levels,” says the Russian company.

The company says a possible decision to re-launch Lake Johnston could be based on metals market situation and geological investigations conducted on the licensed plots in the region. Overall 60 Lake Johnston employees will be laid off. They will receive legally mandated severance packages.

In Australia the company is focusing on developing Honeymoon Well, one of the largest sulfide ore deposits in the world, while at the same time upgrading Cawse hydrometallurgy complex. In total the project may secure circa 40 thousand tonnes of Ni hydroxide with high refining grades.

Norilsk Nickel is the world’s largest producer of nickel and palladium and one of the leading producers of platinum and copper. It also produces various by-products, such as cobalt, rhodium, silver, gold, iridium, ruthenium, selenium, tellurium and sulfur.

The group is involved in prospecting, exploration, extraction, refining and metallurgical processing of minerals, as well as in production, marketing and sale of base and precious metals.

Norilsk Nickel’s production facilities are located on three continents and in five countries: Russia, Australia, Botswana, Finland, and South Africa.