Westland Mineral Sands has confirmed its Okari mine near Westport will go into care and maintenance, with the loss of 40 jobs.
It’s the second major blow in a week for the West Coast town, which faces losing its only air service from May.
WMS this afternoon announced a “temporary operational pause” at its Nine Mile pilot plant.
The decision follows four days of consultation with staff.
WMS managing director Ray Mudgway said the decision had been one of the hardest the company had had to make.
“This is first and foremost about our people,” Mudgway said in a statement.
“The decision will result in the disestablishment of 36 roles in Westport and a further four roles across the group.
“These are people who have helped build this business from the ground up over the past three- and-a-half years. They’re not just employees. They’re a team and for many, they feel like family.
“We know this will have a real impact on individuals, their families and the wider West Coast community, and that weighs heavily on all of us.”
Mudgway said he had been humbled by the team’s response.
“They’ve shown professionalism, care for one another, and a real commitment to the business through a very difficult period.”
The mine site would remain managed, compliant and ready to restart within about three months of market conditions improving.
Mudgway said the decision followed sustained pricing weakness in global titanium and mineral sands markets, alongside ongoing volatility in shipping and energy costs. These factors were beyond the company’s control.
“Put simply, there is no value in extracting a strategic resource and exporting it at a loss. That would undermine the long-term opportunity.
“Pausing now is a disciplined step to protect the long-term value of the project and ensure we are well positioned to restart when conditions improve.”
WMS had raised more than $70 million from shareholders over the past three years to develop the project, he said. Shareholder support remained strong.
As part of broader cost management, WMS had reduced its board to the minimum of three directors, including an independent chair.
WMS remained firmly committed to the West Coast, Mudgway said.
“This is our home. Two rūnanga and Development West Coast are shareholders in the business, and we have worked hard to build strong relationships across the region,” his statement said.
Development West Coast paid $3 million in 2024 for a 1.84% share in WMS.
Mudgway said WMS had provided two Coast scholarships and community sponsorships.
The company’s long-term outlook had not changed. It remained focused on developing a mineral separation plant in Buller, to move into higher-value processing, create construction and operating roles, and build a more resilient business.
WMS announced less than a month ago that it hoped to cash in on a new $80 million Regional Infrastructure Fund for on-shore processing.
The company has previously received $7 million of taxpayer funding towards a barge which ran aground on its second visit to Westport and remains unrepaired and under Maritime NZ detention in Nelson.
Mudgway’s statement said WMS would continue progressing its broader plans, including exploration in Buller South, ongoing work on the Mananui project south of Hokitika, and developing bulk logistics capability.
“We are not walking away. This is about taking a disciplined, temporary step now so we can come back stronger. We remain committed to the West Coast and to building a long-term, inter-generational minerals business in the region and for New Zealand.
“Feedback from affected staff has been clear. Many of our people have told us they want to stay connected to WMS and be part of its future. We are continuing conversations with team members who are keen to understand what opportunities may exist as we continue to develop the sector.
“We intend to maintain those relationships and ensure they are among the first we look to when roles become available again,” the statement said.
– By Lee Scanlon of Westport News