Global Advanced Metals (GAM) confirmed last week it had advised employees and contractors the company was suspending continuous mining activities at Wodgina from the end of February.

World-wide softening tantalum demand and delays in receiving governmental approval for installation of necessary crushing equipment were contributing factors in this decision.

GAM will continue production at its Greenbushes plant, processing ores from Wodgina, Greenbushes and Mt Cattlin mines into concentrate to meet existing internal and external customer demand.

However, the flow of ore from Wodgina would reduce over time.

A spokesman for GAM said the precise number of positions to be affected at Greenbushes was not known, or the exact timing, except that it was likely to occur over several months.

“Given the strong job market in the mining sector, we do not expect it will take long for these employees to find alternative employment in the area or elsewhere,” the spokesman said.

“Other mining companies have already advised us they have jobs available and would like to talk to staff who will no longer be working with us.”

The company will resume mining of tantalum ore when market conditions are appropriate.

In the meantime, GAM is progressing with approvals and construction of a new high capacity crushing facility at Wodgina.

GAM recently expanded into producing tantalum products, powders and metals through a US$400 million acquisition of Cabot Corp’s Supermetals business, following approval by US regulatory authorities.

Tantalum processing plants in the United States and Japan are now combined with the company’s existing mining and processing operations in Australia.

A spokesman said the overseas plants would not necessarily be supplied by the WA sites such as Greenbushes, as they had different sources of supply.

“Ultimately Greenbushes is there to concentrate the ore, so it’s all about the amount of ore being sent through,” he said.