BHP Announces Temporary Suspension of Nickel Operations in Western Australia

BHP has made the difficult decision to temporarily suspend its Western Australian Nickel operations in response to ongoing challenges in the global nickel industry.

The company cites significant economic pressures stemming from global oversupply as the primary reason for the suspension.

BHP has been engaging with both the Western Australian and Federal governments on strategies to address the market challenges facing the Australian nickel sector.

Policy interventions, including nickel’s inclusion on the Critical Minerals List and production tax incentives, were welcomed but ultimately insufficient to offset the market pressures.

The decision to suspend operations was driven by the undeniable market realities of global oversupply and lower nickel prices.

Despite the suspension, BHP plans to continue investing annually to maintain the operations’ integrity and readiness for a potential restart.

BHP reaffirms its commitment to supporting the regional economy diversification efforts, including collaboration on the development of the country’s first ironmaking Electric Smelting Furnace pilot plant in Kwinana.

The company will also support 30 Goldfields-based apprenticeships in the building and construction industry through government programs.

Every frontline employee affected by the suspension will be offered alternative roles within BHP, with redeployment initiatives for other operational staff.

In response to the impact on local communities, BHP is establishing a AUD $20 million Community Fund to aid businesses and residents in the areas of operation.

The company will collaborate with local suppliers and explore partnerships with its iron ore business to mitigate the effects of the suspension.

BHP is committed to supporting the Critical Minerals Strategy of Western Australia by contributing resources and expertise to Curtin University for critical minerals research during the temporary suspension.