First Nickel Inc. (TSX:FNI) announced the decision to restructure its Lockerby nickel-copper mine to reduce costs, increase exploration and extend mine life. The mine is located in the Sudbury Basin in Ontario.

As quoted in the press release:

The Plan is founded on productivity improvements to be realized through a strong focus on basics and essential work, and is expected to allow a reduction in costs while maintaining relatively consistent nickel production. Cost reductions and productivity changes require a 30% reduction in FNI personnel, and a 75% reduction in third-party contractor personnel, for an overall workforce reduction of 45%. Costs at the Toronto corporate office are also being reduced as part of the Plan.

Thomas M. Boehlert, president and CEO of First Nickel, stated:

Our primary objective over the past month has been to determine how we could safely and economically continue to operate the Lockerby mine into the future. We are implementing a plan that will see production continue through 2016, preserve 115 FNI jobs, restart and expand our exploration drilling program and potentially add to mine life. The Lockerby team has successfully met past challenges and I am confident in their ability to execute on the restructuring plan, ensuring that the mine will be viable going forward.

Click here for the full First Nickel Inc. (TSX:FNI) press release

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