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OPERATIONAL REVIEW
DIGGeRs & DeALeRs PReVIeW MACA.NET.AU

The cost of finding

and producing nickel

wo of Australia’s leading nickel miners else’s business is doing, but my under- ment with the labour but certainly it’s very
Texpect inflationary cost pressures to standing is that it’s towards the better end hard when you’re ramping up and trying to
prevail for at least another 18 months, while of the industry. manage cost at the same time. When we
equally preparing for a “new normal” should “As part of that recognition of the culture did the feasibility in April last year, we put a
the current labour squeeze show no signs in the business, we get a lot of interest. The plan together and we said to the site guys,
of abating. most recent job that we advertised for was ‘you have to meet the targets, you just have
Speaking at the May edition of Pay- an analyst role in our BD department, and to be dedicated and push through’. Our
dirt Unlocked where nickel was the main we had 100 applications. So, a lot of interest CFO Grant [Dyker] watches every cent and
course on the discussion menu, IGO Ltd but it does mask a general tightness in the I took the easy job, and said to them, ‘the
managing director Peter Bradford said his labour market.” feasibility is done on $US16,000/t nickel,
company was not immune to the industry- Panoramic Resources Ltd has battled leave the nickel price to me, I’ll work on
similar cost pressures
over recent months hav-
ing restarted the Savan-
nah nickel mine in West-
ern Australia’s Kimberley
region last October.
Operations are now
ramping up but attracting
skilled workers to site has
proven to be just as chal-
lenging as previous it-
erations of the Savannah
mine, particularly due to
the tough working condi-
tions associated with the
Kimberley region.
Panoramic managing
director Victor Rajasoo-
riar said the decision to
adopt a contractor model
– Barminco has taken on
the underground mining
operations while Primero
Group is looking after the
processing side – had
played a crucial hand in
being able to recruit the
right people for the site.
wide challenge of having to table increased “On the technical side, we’ve got about Todd Ross
wages and salaries in order to attract and 40 people who are Panoramic employees
retain the best people and skills to the busi- on site. We only hired these guys in July that’, and now it’s nearly doubled.
ness. last year…and out of that 40, we lost five “Costs have gone up, and sure it’s by
“As an industry, it has been a real chal- but one actually returned 3-4 weeks ago,” a certain percentage, but the commodity
lenge and I would think that every single Rajasooriar said. price has pretty close to doubled, and that’s
person in this room has faced that chal- “As Peter said, culture is very important actually helping us see through this process
lenge,” Bradford told an audience of more for us and that helps bring the people in. The at moment.”
than 160 people from a diverse section of biggest turning point for me, though, was in Rajasooriar said ongoing supply chain
the nickel community. October when the border shut between WA disruptions were the main hurdle in front of
“IGO is no different and the way we and the Northern Territory, where we get a Panoramic as it continued to ramp up op-
tackle that is by working to develop what third of the workforce from. That basically erations at Savannah, but he was confident
we think is an iconic culture in the business meant that we lost about 30% of the staff for such pressures would begin to ease as the
that helps us to both attract and retain the the site. When it got lifted in March, most of world emerged from various shutdowns in
very best people. As a result, our voluntary them were able to come back to site. So, we the wake of the pandemic.
turnover rate within the business is sitting were able to see that dedication to the site. “I think we might see that for the next 12-
around 15%. I don’t know what everyone “I think we are in a good place at the mo- 18 months, you would think it’s all going to

Page 112 JULY 2022 aUSTRaLIa’S PaYDIRT