BHP to suspend WA nickel operations amid saturated market

BHP said it will temporarily suspend its Western Australian nickel operations as it has not “been able to overcome the substantial economic challenges driven by a global oversupply of nickel.” The miner said the suspension will begin in October and last at least until February 2027. 

“We understand this is a challenging period for the Western Australia Nickel team and surrounding communities. Every frontline employee will be offered another role within BHP, and best endeavours will also be made to identify redeployment opportunities for other employees engaged in the day-to-day operations of Western Australia Nickel,” said Geraldine Slattery, BHP president Australia.

“We will also work closely with local communities, Traditional Owners and suppliers to support a responsible transition process, which will include the establishment of a A$20 million Community Fund.”

The miner will suspend mining and processing operations at the Kwinana nickel refinery, Kalgoorlie nickel smelter, and Mt Keith and Leinster operations, and the development of the West Musgrave project.

During the temporary suspension, BHP said it will invest A$450 million per year following completion of a transition period to support a potential re-start of the Western Australian nickel operations.

Source: BHP

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