Australia's IGO flags job cuts as nickel price slumps
MELBOURNE, July 30 (Reuters) -Australian nickel and lithium producer IGO IGO.AX will slim down its executive team amid nickel writedowns as Chief Executive Ivan Vella reshapes the company to focus on improving lithium hydroxide production, it said on Tuesday.
IGO has undertaken a strategy refresh since Vella joined late last year. Since it bought nickel miner Western Areas for A$1.1 billion ($720.7 million) in 2022, it has written down more than that value on its nickel businesses amid a slump in prices.
Details of the refresh are set to be unveiled at the company's annual results on Aug. 29, IGO said, adding that changes in the meantime are expected to result in a smaller team over the coming months.
"IGO has commenced a review of the size, structure and capability of its corporate and exploration teams," it said in its quarterly production report.
As part of the restructure, IGO will focus on maximising value from its lithium business including its Greenbushes lithium mine, which it owns with China's Tianqi Lithium 002466.SZ and Albemarle ALB.N.
It will push for a better performance at its Kwinana hydroxide plant, for which its train 1 will undergo a major shutdown in the December quarter for improvement works, at a cost of A$80 million to A$100 million.
It will also look to maximise cash from its nickel businesses which are transitioning to care and maintenance.
The miner said it planned to raise production of lithium raw material spodumene by as much as 150,000 tonnes next financial year as it set production guidance at 1.35 million to 1.55 million tonnes. It did not give guidance for lithium hydroxide production.
IGO's lithium business is held via a 49% stake in Tianqi Lithium Energy Australia (TLEA) where Tianqi Lithium owns 51%. TLEA owns 51% in the Greenbushes Lithium mine with Albemarle owning 49% and TLEA owns 100% of the lithium hydroxide refinery.
($1 = 1.5263 Australian dollars)
Reporting by Melanie Burton; Editing by Stephen Coates
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