One of Western Australia's largest nickel operations, which was shuttered during the industry's recent downturn, could soon be under new ownership. First Quantum Minerals (FQM) has begun quietly assessing options to sell its majority stake in the Ravensthorpe nickel laterite mine, industry sources have revealed.
Strategic Review Amid Nickel Price Recovery
The Canadian mining giant, listed on the Toronto Stock Exchange, has initiated a broader strategic review of its global portfolio, which includes its 70 per cent holding in the Esperance-region mine. The operation has been in care and maintenance since July 2024, a casualty of a global nickel glut driven by massive Indonesian supply backed by Chinese investment.
An FQM spokesman declined to comment on the sale speculation. However, it is understood that a complete divestment or a partial sell-down of its operating stake are both being considered. The move coincides with a significant rebound in nickel prices, which have climbed from approximately $US14,100 per tonne in mid-December to above $US17,500/t currently.
This price spike is largely attributed to Indonesia's government signalling plans to introduce production quotas to address the oversupply it helped create. Analysts caution that the market could move sharply once the details of these quotas are made public.
Potential Suitors and Market Context
Front-runners to acquire the Ravensthorpe asset are believed to be major industry players with existing interests in WA. These include commodities titan Glencore—recently a takeover target of Rio Tinto—and Andrew Forrest's Wyloo metals group.
A key contender is South Korean steel and battery manufacturing giant POSCO, which already owns the residual 30 per cent stake in Ravensthorpe and holds an offtake agreement for the mine's production. POSCO has recently demonstrated its appetite for West Australian assets, acquiring a 30 per cent share in Mineral Resources' two lithium mines for $1.2 billion in November last year.
Any serious bidder would likely have also appraised BHP's Nickel West division, which was formally put up for sale in October 2025. FQM's decision to place Ravensthorpe on the market adds another major asset to the available pool for investors betting on nickel's future.
History and Future Potential of the Mine
The Ravensthorpe mine's history has been turbulent. At its peak, it sustained more than 850 jobs. BHP originally built the mine for over $2 billion before offloading it to FQM in 2009 for $376 million. POSCO later paid roughly $310 million for its minority stake in 2021.
The mine was closed in April 2024 when nickel prices were around $US19,100 per tonne. Since then, FQM has been spending between $1.5 million and $2 million per month to maintain the site for a potential restart, which would be its third in less than twenty years.
Significantly, in October 2025, FQM received Federal Government approval to expand the mine's footprint from 144 hectares to 387 hectares. This expansion is for the Southern mine pit and processing area and is critical for extending the tailings storage facility (TSF).
"This extension (of the TSF) is critical for the ongoing operations of the Ravensthorpe nickel project, in particular to store the tailings produced from the processing of additional ore associated with the expansion of mining activities," a company report stated. An upgraded TSF would need to be constructed within 18 months of a mining restart.
The future of the Ravensthorpe mine now hinges on the outcome of FQM's strategic review and whether a new owner is willing to bet on the long-term demand for nickel in the global battery and stainless steel markets.
