Oil industry faces short-term hurricane impact
While it’s too early to know the full economic and human toll of Hurricane Harvey, we expect a relatively short-term impact on the U.S. energy industry.
According to Bloomberg, First Quantum Minerals Ltd., a Vancouver-based company, recently announced its decision to suspend the Ravensthorpe nickel operation in Western Australia after the metal used in stainless steel production missed a rally by everything from aluminum to zinc.
First Quantum Minerals will place Ravensthorpe on care and maintenance next month at an estimated cost of $10 million, plus $5 million annually. Restarting would cost about $10 million, the company said in a statement. The company’s shares lost as much as 4.4% in Toronto, the worst performance among peers.
“Ravensthorpe is an excellent operation with an outstanding workforce and supportive community but the continuing depressed nickel market conditions, over some years, leaves us no option,” First Quantum Minerals Ltd. Chairman Philip Pascall explained. (Source: Bloomberg))
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