What suspending BHP’s WA nickel operations means for the industry

The Australian Government’s Resources and Energy Quarterly: September 2022 underlined the central role critical minerals will play in the future.

The Mount Keith operation is part of BHP’s Nickel West business. Image: BHP.

BHP has decided to temporarily suspend its Nickel West operations and the West Musgrave project in Western Australia amid the global nickel downturn.

What does the suspension mean for the Australian nickel industry? Australian Mining investigates.

Operations will be suspended in October and handover activities for the temporary suspension will be completed by December.

The transition period has commenced and will see BHP suspend mining and processing operations at the Kwinana nickel refinery, Kalgoorlie nickel smelter and Mount Keith and Leinster operations, as well as suspend development of the West Musgrave project.

The company will also implement a care and maintenance program of work to ensure the ongoing safety and integrity of its mines and related infrastructure. BHP will also continue investing in exploration to extend the resource life of Western Australia Nickel to preserve optionality.

“We understand this is a challenging period for the Western Australia Nickel team and surrounding communities,” BHP president Australia Geraldine Slattery said.

“Since BHP announced a review of Western Australia Nickel in February, we have explored options to stem losses in the short-term and identify a viable path forward for the business.

“Like others in the Australian nickel sector, we have not been able to overcome the substantial economic challenges driven by a global oversupply of nickel. We have made the difficult but necessary decision to temporarily suspend the Nickel West operation and West Musgrave project.”

As a result, 1600 Western Australian Nickel frontline employees will be redeployed or offered redundancies.

BHP has pledged to support its workforce and local communities during the suspension. The company will establish a $20 million community fund to support local communities and will invest around $450 million per annum once the transition period to support a potential restart of Western Australia Nickel is completed.

“Western Australia remains an important investment destination for BHP globally, with investment in the state expected to be greater than $12 billion over the next five years and we will continue to work with all of our Western Australian partners to advance the economic prosperity of the state,” Slattery said.

BHP intends to review the decision to temporarily suspend its Western Australia Nickel business by February 2027.

The Nichel West operations suspension follows BHP pausing part of its Kambalda processing operations, which took effect from June. At the time, the major miner was also weighing putting its Nickel West operations into care and maintenance.

The review resulted in BHP making about a quarter of its West Musgrave workforce redundant and decreasing the number of contractors who were working at its Kalgoorlie nickel smelter.

Government response

In January, Federal Resources Minister Madeleine King and WA Mines Minister David Michael met with nickel producers to discuss ways they could support the industry during the downturn.

Following the roundtable, King and Michael said they would work together to accelerate discussions on incentivising investment while urgently progressing discussions with State and Territory Governments on common user infrastructure for critical minerals.

A month later, King placed nickel on the critical minerals list, which outlines minerals that are essential to low-emission technology, the economy and national security, and whose supply chains are vulnerable to disruption.

Now, King has described BHP’s decision as a reflection on “the extreme volatility in global nickel markets”.

“Our immediate concern is for the workers and communities impacted,” King said.

“We welcome the commitments made by BHP to redeploy workers who wish to continue to work for the company and we welcome BHP’s undertaking to continue to invest in Nickel West throughout the temporary suspension to enable a re-start when global nickel markets stabilise and improve.

“We also welcome BHP’s commitments to continue to support local supply chains and pay royalties to First Nations communities through the temporary suspension and work with the WA Government to continue to support skills and resource investment in future projects.”

WA Premier Roger Cook echoed similar sentiments.

“This is a disappointing decision and our thoughts are with the thousands of workers and their families affected by the suspension,” Cook said.

“My government will do whatever it takes to support those workers and our regional communities through this difficult time.”

The WA Government previously announced a 50 per cent royalty relief program to kick in if the average price of nickel concentrate dips below $US20,000 per tonne. The rebate is repayable by companies in equal quarterly instalments over the following 24 months.

BHP will now allocate funding towards the WA Government’s proposed $200 million critical minerals advanced processing common user facility, which will be co-funded by the Commonwealth.

The company will also pursue an electricity smelting furnace in Kwinana with its project partners, making its refinery resources and expertise available for critical minerals research in partnership with Curtin University, and will donate $5 million to support apprenticeships under the WA Government’s group training organisation wage subsidy program.

Industry response

Following the nickel roundtable in late January, King and Michael committed to engaging in further discussions with the Chamber of Minerals and Energy WA about the future of the nickel industry and the role of royalties.

CME CEO Rebecca Tomkinson described BHP’s nickel suspension as “responsible”.

“This is a challenging time for our critical minerals sector and we’re committed to working closely with State and Federal Governments to ensure our policy settings remain competitive, enabling the industry’s viability across all time horizons – short, medium and longer-term,” Tomkinson said.

“BHP is a significant employer in WA with strong ties to the local communities of Leinster, Leonora, Kalgoorlie and Kambalda. I know this decision comes after months of operational review and careful consideration of options. It has not been made lightly.

“We are fortunate right now that the WA minerals sector remains vibrant, so workers impacted by this decision are in a good position to secure work elsewhere in resources.”

Tomkinson said the industry cannot become complacent during difficult times.

“We must continue to keep WA mining strong by having a robust and efficient legislative framework in place that fosters future development,” she said.

Possible solutions

BHP has welcomed the proposed production tax credit (PTC) for critical minerals, which will allow eligible entities to claim 10 per cent of expenditure for processing and refining any of Australia’s 31 critical minerals.

The PTC was inspired by a similar US Government scheme introduced through the Inflation Reduction Act, which considered to be the largest climate investment in US history.

The Association of Mining and Exploration Companies (AMEC) engaged Mandala Partners in 2023 to economically model the introduction of an IRA-style PTC into Australia.

In February, AMEC led a delegation of mining and energy companies that included IGO, Wyloo, Australian Vanadium, QEM, Pilbara Minerals, and Tesla to progress discussions surrounding PTC with the Federal Government. Consultation on a potential PTC commenced in June.

Alongside a PTC, Wyloo CEO Luca Giacovazzi has advocated for a ‘green nickel price premium’, which would differentiate between the Australian-produced nickel that follows strong environmental, social and governance (ESG) standards and the low-quality nickel produced in countries such as Indonesia.

Nickel pricing reform also has the support of Minister King and Andrew Forrest.

In January, Henry predicted that the nickel downturn would extend to the end of the decade, adding that nickel is BHP’s smallest business.

“Yes, it’s been one of the three areas of production growth that we’ve called out for BHP … but having said that, it’s always been the smallest … business within the BHP portfolio, and in terms of the growth outlook for the company,” Henry said.

“But there’s 17 million Australians who depend upon BHP, either directly as shareholders, or indirectly through superannuation funds, for a successful and high-performing BHP.

“That creates a real sense of accountability on our part, to ensure that we’re taking the right decision, taking into account a range of considerations, both shareholder and other stakeholders, and we’re in that process as we speak.”

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MinRes executes Indigenous land use agreement for Onslow Iron

OLIVIA THOMSON

MinRes’ transhipper delivering Onslow Iron’s first ore to bulk carrier off the Pilbara coast. Image: MinRes

Mineral Resources (MinRes) has signed an Indigenous land use agreement with Buurabalayji Thalanyji Aboriginal Corporation (BTAC) for the Onslow Iron project in Western Australia.

BTAC is the prescribed body corporate for the Thalanyji People that hold native title over 11,120 square kilometres of land in the west Pilbara, where Onslow Iron is located.

Under the Indigenous land use agreement, MinRes and BTAC will collaborate for the next 30-plus years to create opportunities for the Thalanyji People.

This includes creating employment opportunities for future generations of Thalanyji People, including apprenticeships and traineeships every year at Onslow Iron.

The signage of the agreement follows more than two years of collaboration between MinRes and BTAC.

“This agreement is the start of a positive relationship between the Thalanyji People and MinRes,” BTAC chair Frances Hayes said.

“This agreement will help the Thalanyji community through employment, training and business opportunities with hopes of making Thalanyji People prosperous for decades to come.

“I want to thank MinRes for working alongside BTAC throughout the co-design process to support the vision of a bright future that we have for our people and their children.”

BTAC conducted cultural heritage surveys prior to the construction of Onslow Iron’s dedicated haul road that links the Ken’s Bore mine site to the Port of Ashburton. It will now continue providing monitoring services to ensure cultural heritage protection.

“I am grateful to the Thalanyji people for entrusting MinRes with the responsibility of implementing this agreement,” MinRes managing director Chris Ellison said. “I am excited by the future successes we will share at Onslow Iron.

“As the first agreement of its kind signed by MinRes, this is a proud moment for the company and signifies our ongoing commitment to partner with Traditional Owners on whose land we operate.”

Onslow Iron is one of the largest iron ore projects currently being developed in Australia, with a forecasted annual capacity of 35 million tonnes and a mine life of more than 30 years.

The project is being developed by MinRes and its Red Hill Iron joint venture (RHIJV) partners China Baowu Steel Group, AMCI and POSCO. MinRes designed, constructed and operates Onslow Iron, with the project delivering its first iron ore shipment in May.

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Production on the up at Tomingley

ALEXANDRA EASTWOOD

Alkane Resources’ Tomingley gold project. Image: Alkane Resources

The Tomingley gold operation in New South Wales continues to be a boon for Alkane Resources, meeting its updated production guidance of 55–58,000 ounces (oz).

Tomingley produced 57,217oz of gold for the 12 months to June 30, with production anticipated to be between 70–80,000oz for the 2024–25 financial year.

“Tomingley is steadily increasing production from the Roswell underground,” Alkane managing director Nic Earner said. “Tomingley is now performing well, and the paste plant and flotation circuit upgrades remain on schedule.

“Alkane’s board and management acknowledge and thank the employees and contractors of the company for their strong and continued commitment to safety, production and exploration performance.”

Alkane announced back in June that it was looking to expand key infrastructure at Tomingley, increasing its production to above 100,000oz of gold per year while also expanding the site’s plant to a nominal 1.5 million tonnes per annum.

“The underground at Roswell has begun production, and we expect to produce over 70,000 ounces of gold next year,” Earner said at the time.

“The paste plant and the flotation/regrind circuit are under construction with commissioning expected later this year.”

Alkane blasted the first production stope at its Roswell deposit in April, marking the next milestone in extending Tomingley.

Tomingley’s five-year plan also involves the relocation of the Newell Highway, a project expected to cost Alkane $89 million in capital expenditure. A final investment decision is expected to be made in early 2025.

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Iron ore miner reboots Shine operations

KELSIE TIBBEN

Shine is located near Fenix’s Iron Ridge operation in Western Australia. Image: Fenix Resources

Fenix Resources is taking steps to recommence mining at the Shine iron ore mine in Western Australia.

The miner took the reins of Shine as part of its acquisition of Mount Gibson Iron’s Mid-West iron ore, port and rail assets last year.

The Fenix board announced today it has approved the restart and is aiming to commence site works in the current quarter with first iron ore production targeted for the end of the year.

Fenix executive chair John Welborn said Shine is an attractive ‘shovel ready’ growth project with similar mining scale and operational characteristics to the company’s nearby operations at Iron Ridge.

“The restart of mining operations at Shine is an obvious opportunity to expand Fenix’s production and leverage our excellent Mid-West mining and transport logistics capabilities,” Welborn said.

“Shine will be our second wholly owned producing asset in the Mid-West and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows, and profitability growth.

“Fenix is committed to unlocking value from the abundant valuable resources of the Mid-West and the obvious place to start is with the resources that we own and control.”

Fenix said approval to proceed with the Stage 1 mine plan for Shine follows a comprehensive review of all aspects of the project.

This included the completion of an in-pit drilling program, product sampling, a tender process for mining and processing operations, and updated resource modelling.

Pre-production capital expenditure is expected to be minimal given the availability of all required critical infrastructure and that all required approvals and permits are in place.

The approved capital expenditure budget for Stage 1 is $7.4 million and includes the upgrade of existing camp infrastructure, contractor mobilisation, and the upgrade of the Shine access road.

TAKRAF Australia: growing from strength-to-strength

OLIVIA THOMSON

TAKRAF Group project highlights in Australia. Image: TAKRAF Group

TAKRAF Group is one of Australia’s leading OEM (original equipment manufacturer) suppliers of new machines and equipment to the mining and resources industry. The Group also boasts an in-house capability to provide comprehensive aftermarket and maintenance support for its own and other OEM equipment.

With Australia’s mining and resources industry seeking to balance economic growth with environmental sustainability and social responsibility, TAKRAF Group is ideally positioned to support the local industry in the next stage of development of this ever evolving and dynamic sector.

Through its long and distinguished history in Australia, TAKRAF Group has developed an innate understanding of local mining conditions, standards and requirements, enabling its Australian offices to provide its clients with the most suitable solutions to their unique project requirements.

As a result, the Group boasts an extensive and increasing reference list of projects in Australia, covering both TAKRAF and DELKOR technologies.

Its reputation as the world’s leading technology provider in run-of-mine and bulk material handling has meant that its TAKRAF brand portfolio is in considerable demand from Australian operations, from its technologies for overburden removal and raw material extraction through processing to ship loading.

Recent project examples include the supply of a rail-mounted, slewing and luffing stacker for an important bulk export terminal. This machine, with its 62-metre curved boom is one of the largest and technically advanced globally.

A TAKRAF double jib level luffing ship unloader replaced two existing machines at an important deep-water port on the Australian east coast, enhancing the capability of the port in handling a range of commodities.

Other TAKRAF equipment currently in operation at Australian mines and ports ranges from semi-mobile crushing plants to bridge-type bucket-wheel reclaimers, stackers and trippers, radial stackers and portal scraper reclaimers.

The DELKOR liquid/solid separation range of technologies is also seeing increasing application in Australia, and globally, for their ability to enable the optimum recovery and recycling of water, reducing freshwater intake into the plant and enhancing environmental sustainability.

DELKOR dewatering equipment, such as its high-rate and high-density thickeners, are specifically designed for the needs of the mining industry and the ongoing transition from wet to dry tailings deposits.

In a recent order, TAKRAF successfully commissioned a 30m diameter DELKOR tailings thickener for a plant in Australia.

DELKOR has also provided four of the largest DELKOR belt linear screens (40 square metres) available globally to a gold mine in Australia, while its new generation BQR flotation cells, equipped with the MAXGen mechanism, have found wide acceptance in the country, with orders coming from several gold mines to a nickel restart project.

TAKRAF Australia’s countrywide presence includes office representation in Brisbane, Sydney and Perth, close to its clients’ registered offices; as well as smaller satellite offices close to its clients’ operations to support them in their day-to-day operational requirements.

Such long experience, combined with the wide extent of its network, has enabled TAKRAF Australia to establish strong working relationships with some of the largest diversified mining companies, as well with the smaller mid-tier and junior players.

In addition, its services, both technology supply and aftermarket support, are enhanced by solid partnerships with local Australian suppliers.

TAKRAF is one of the largest and most experienced full-service suppliers of mining industry equipment, supporting not only its own machines over their full product lifecycle, but also that supplied by other OEMs.

Given the importance of quickly identifying and solving issues before problems occur, TAKRAF Australia’s satellite offices are conveniently located to timeously and efficiently provide customised maintenance solutions.

These solutions range from continuous condition monitoring through regular inspections, spare parts supply, on-site repair support and stock management, to site assistance for troubleshooting and major repairs including complete refurbishments as an alternative to purchasing new equipment, as well as equipment relocation.

“Worldwide, the resource industry is facing complicated challenges in transforming towards a sustainable future,” TAKRAF Australia managing director Ivan Agostini said.

“As a result, TAKRAF Group focuses on areas that are critical for reliable and sustainable operations, providing innovative solutions that save energy, lower environmental impact and meet or exceed operational requirements.

“This, together with our commitment to innovation and technology development, means that we are well placed to support our clients in Australia towards the next significant step in our industry’s move towards greater environmental sustainability – an area in which the combined strengths of our TAKRAF and DELKOR portfolio will provide for fully integrated solutions that make the difference.

“Furthermore, we believe that our commitment to fostering collaboration between owners, operators and original equipment providers is the best approach in building systems that exert real savings on energy and water consumption.”

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AVL advances new vanadium plant

KELSIE TIBBEN

Image: alexlmx/adobe.stock.com

Australian Vanadium Limited (AVL) has locked in key mining areas and a location for its downstream processing plant as the company moves closer to production.

AVL has finished the first phase of an optimised feasibility study (OFS), which was launched following the completion of AVL’s merger with Technology Metals Australia (TMT).

The study aimed to consolidate the companies’ adjoining projects into one orebody.

The Australian Vanadium project includes a vanadium mine and a crushing, milling and beneficiation plant located at Gabanintha near Meekatharra in WA, where the mining and upstream processing of vanadium bearing magnetite ore is proposed to be undertaken.

The next phase of the study will focus on finalising a detailed mining plan and optimisation of the plant and infrastructure.

“By focusing on the most promising sections of the orebody and conducting a comprehensive analysis to select the optimal location for the downstream processing plant, we have now finalised the key foundations from which the remaining OFS activities can fully define a ‘stronger for longer’ version of the project which has been unlocked through the recent merger,” AVL chief executive officer Graham Arvidson said.

In parallel to ongoing OFS works, Arvidson said AVL continues to assess opportunities for grant funding provided by the Australian Government.

The funds provide AVL options for activities such as detailed engineering and the acceleration of project schedule by proceeding with long lead equipment orders.

“Timely delivery of the project is a key objective for the company in anticipation of growing demand for vanadium flow batteries, which will cornerstone the essential long duration energy requirements of the net-zero carbon energy transition,” Arvidson said.

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AIMEX: The next generation of Australian mining

STAFF WRITER

Image: AIMEX

Australia’s longest-running mining exhibition returns to Sydney Showground from September 2–4 2025, bringing the country’s mining suppliers and professionals together under the one roof.

As the key event on the mining calendar, the Asia-Pacific’s International Mining Exhibition (AIMEX) is an internationally renowned platform showcasing the latest technology, equipment and services, pushing the envelope for what’s possible in mining innovation.

As Prime Creative Media general manager – events Siobhan Rocks attests, AIMEX 2025 is all about defining the next generation of Australian mining.

“After a successful 2023 edition, AIMEX 2025 will be bigger than ever, with opportunities to connect with some of the most important decision-makers in the Asia-Pacific region,” Rocks said.

“This is a truly international event, with exhibitors from China, India, South Korea, Japan, Singapore, Taiwan, Italy and Germany.

“It’s an ideal opportunity for Australian miners to connect with some of the most prominent industry minds from all over the world.”

AIMEX 2025 will offer a unique opportunity for leading suppliers and buyers to conduct face-to-face business, learn about the latest trends, and network in an interactive forum.

Attendees will come from all corners of the resources sector, from senior leaders to site management to engineers to maintenance personnel to digital innovators and everything in-between.

“There is something for everyone at AIMEX,” Rocks said.

“The 2025 event will feature more than 250 local and international suppliers, as well as a free-to-attend multi-stream conference with leading experts examining the most pressing issues in the mining industry.”

AIMEX 2025 will also feature an extensive Meet the Buyers platform, providing exhibitors with the opportunity to connect directly with the industry decision-makers most important to them.

“Our Meet the Buyers platform offers people the chance to schedule invaluable meetings to ensure they can get the most out of their time at AIMEX 2025,” Rocks said.

The AIMEX 2025 program will have a strong focus on women in mining, with keynote speakers and panel discussions challenging the status quo, generating new ideas and solutions for a more inclusive mining industry. The annual Women in Industry Awards will also be co-located at AIMEX 2025, celebrating the achievements of women in traditionally male-dominated fields.

At the Mining House Pavilion, attendees will be able to rub shoulders with the sector’s leading miners and understand the operational landscape of Australia’s vast resources industry.

As always, there will be lots of networking opportunities, while a Decarbonisation Showcase will highlight the latest electrification concepts and technologies helping the industry drive down carbon emissions.

Now under new ownership, AIMEX 2025 will showcase the best of the Asia-Pacific mining sector and provide attendees with the ultimate destination to source the latest insights, products and innovations.

Sales are now open for returning exhibitors to secure early bird prices, with spots assigned on a first come, first serve basis.

For more information on rebooking, or if you are a new exhibitor looking to secure your spot on the waiting list, visit aimex.com.au/exhibitors

True North’s Cloncurry commences operations

OLIVIA THOMSON

Overlooking the Great Australia mine within the Cloncurry project. Image: True North Copper

True North Copper (TNC) has commenced clearing activities and blast hole drilling at the Wallace North deposit that sits within the Cloncurry copper project (CCP) in north-west Queensland.

TNC’s personnel is set operate the dry hire equipment at Wallace North, most of which is already on-site. The company is currently recruiting for the operations team, which is close to finalisation, with a supportive technical team already in place for when mining begins.

Dewatering of Wallace North’s pit area is already well advanced, with all blast hole drilling expected to be in dry holes.

Leading TNC during this next phase of operations is newly appointed managing director Bevan Jones, who commenced his role on June 10.

“We have commenced mining operations at Wallace North, which will allow our CCP to restart copper production,” Jones said.

“This has been our major goal since listing on the ASX (in June 2023). I thank our team for their efforts in moving towards this goal to allow TNC to become Australia’s next copper and critical metals producer.”

The mining ramp-up at Wallace North will initially build ore stockpiles, with road haulage expected to start within a few weeks of start-up.

Oxide ore will be transported by road train to True North’s Cloncurry heap leach. Sulphide ore will then be transferred to a nearby concentrator for toll treatment under True North’s toll-milling agreement with Glencore.

“CCP is estimated to deliver free cash flow of about $200 million at current prices over its 4.6-year initial mine life, based on existing JORC reserves,” Jones said.

“Cash flow from mining will be used to explore further opportunities to build this inventory.”

Wallace North is one of four open-pit deposits that makes up Cloncurry. The deposit currently holds an ore reserve totalling 0.7 million tonnes (probable) grading 1.01 per cent copper and 0.46 grams per tonne gold for 6800 tonnes of copper and 10,000 ounces of gold.

An upgrade for Mt Ida gold

ALEXANDRA EASTWOOD

Image: Phawat/Shutterstock.com

Delta Lithium (18 RICHARDSON STREET, WEST PERTH Western)has upgraded the mineral resource estimate (MRE) for its Mt Ida project in Western Australia.

The miner described the MRE upgrade as “major” as it represents an 82 per cent increase in contained gold at the project.

“This is a wonderful result for Delta shareholders, reaffirming our long-held belief that the gold system at Mt Ida has significant scale and upside,” Delta Lithium managing director James Croser said.

“The Baldock is fast becoming one of the very few, large high-grade undeveloped gold deposits in WA in excess of 500,000 ounces.”

Mining approval has already been granted for Phase 1 open pit mining at Mt Ida, with significant potential for further resource growth now being tested as drilling gets underway.

“The commencement of open pit mining has been approved, and the underground approval with the department is submitted and pending,” Croser said.

“We are investigating the best options for Delta shareholders to crystallise value from our gold, which can then be applied to further developing our core lithium business.

“The efforts of Delta’s geology team have been tireless and driven toward this success. We have already started follow up gold drilling at Mt Ida to target resource growth beyond one million ounces.”

Holcim announce ‘transformative’ AI plan

ADAM DAUNT

Holcim will expand its usage of AI technology. Image: Holcim

Holcim will use artificial intelligence to include more than 100 plants worldwide over the next four years under a new plan announced recently.

The announcement is an expansion of the company’s current use of artificial intelligence, which has already been deployed in 45 plants. The technology is used to predict and prevent failures as part of the company’s approach to preventive maintenance. The inclusion of AI technology is part of Holcim’s Plants of Tomorrow program, which involves over 140 integrated plants and grinding stations across more than 40 countries.

The new plan will see Holcim roll out its AI preventative maintenance solution and pilot a generative AI program. The solution was developed in collaboration with C3 AI, which is a well-known AI software provider.

“AI is a transformative technology that will revolutionise our industry,” Holcim chief executive officer Miljan Gutovic said.

The company will continue to upskill its maintenance teams to use the AI technology to carry out asset management and optimisation in real time.

Overall, Holcim has AI initiatives in several other areas including product quality and process optimisation to autonomous vehicles and computer vision. These initiatives also include the use of unmanned drones for enhanced inspection and safety practices, and smart control systems for efficient energy consumption.

“Already widely embedded across Holcim, AI catalyses operational efficiency and enhances customer service. We will ultimately scale up our use of AI to hundreds of sites worldwide,” Gutovic said.