Westland Mineral Sands (WMS) has announced a “temporary operational pause” at its Nine Mile pilot plant near Westport, resulting in the loss of 40 jobs. This decision comes after four days of consultation with staff and represents a significant setback for the West Coast region, which is likewise facing the potential loss of its sole air service starting in May.
Impact on Workers and the Region
The job losses will affect 36 roles in Westport and an additional four positions across the wider WMS group. According to WMS managing director Ray Mudgway, the decision was “one of the hardest” the company has had to create, acknowledging the impact on employees, their families, and the West Coast community.
Mudgway stated that the company intends to maintain relationships with affected staff and prioritize them for future opportunities as the sector develops.
Market Conditions and Future Plans
The decision to pause operations is attributed to sustained weakness in global titanium and mineral sands markets, coupled with volatility in shipping and energy costs. WMS maintains that extracting resources at a loss would undermine the long-term viability of the project. The mine site will be maintained and could restart within approximately three months if market conditions improve.
Despite the current challenges, WMS has raised over $70 million from shareholders in the past three years and reports continued shareholder support. The company has also reduced its board size to a minimum of three directors, including an independent chair, as part of cost management measures.
WMS remains committed to the West Coast and plans to continue exploring opportunities in Buller South, progressing the Mananui project south of Hokitika, and developing bulk logistics capabilities. The company is also focused on developing a mineral separation plant in Buller to move into higher-value processing.
WMS previously received $7 million in taxpayer funding for a barge that ran aground near Westport and remains under Maritime NZ detention in Nelson.
Frequently Asked Questions
What led to the decision to pause operations?
Sustained pricing weakness in global titanium and mineral sands markets, alongside ongoing volatility in shipping and energy costs, led to the decision.
How many jobs will be lost as a result of this decision?
A total of 40 jobs will be lost, with 36 roles disestablished in Westport and four roles across the wider group.
What are WMS’s long-term plans for the West Coast?
WMS remains committed to the West Coast and is focused on developing a mineral separation plant in Buller, exploring opportunities in Buller South and near Hokitika, and developing bulk logistics capabilities.
How might the economic landscape of the West Coast region be affected by these recent setbacks?
