Mirabela Nickel Brazil subsidiary terminates 220 employees

By Mark Reccek

Bethlehem, Pa., Oct. 30 – Mirabela Nickel Ltd.'s Brazil subsidiary Mirabella Mineracao do Brasil Ltda. terminated the employment of 220 employees on Oct. 22, according to a Friday news release.

The terminated employees represent 33.7% of the total of Mirabella Mineracao staff, as well as 180 contractors at the Santa Rita mine.

The reduction at the Santa Rita mine is part of Mirabella Mineracao’s effort to reduce operating costs to address the depressed nickel price, the company said.

"The Lower Production Model (LPM), commencing from late October 2015, will facilitate a 33% reduction in current nickel in concentrate annual production output, from 18,000 tonnes to 12,000 tonnes, annualized. The LPM has been developed to try and the operations at as close to break even cash position as possible over a fifteen month period from October 2015 to December 2016," the release noted.

According to the company, implementation of the LPM has led to production guidance changes for 2015 to about 14,500 to 16,000 tonnes of nickel contained in concentrate from 16,500 to 18,000 tonnes of nickel contained in concentrate.

Mirabela is a nickel producer in Perth, Western Australia.

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