{"id":8523,"date":"2024-01-24T10:49:43","date_gmt":"2024-01-23T23:49:43","guid":{"rendered":"https:\/\/yinghuiinternational.com\/?p=8523"},"modified":"2024-01-25T10:50:32","modified_gmt":"2024-01-24T23:50:32","slug":"bhp-shuts-down-wa-nickel-processing-plant","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2024\/01\/24\/bhp-shuts-down-wa-nickel-processing-plant\/","title":{"rendered":"BHP shuts down WA nickel processing plant"},"content":{"rendered":"\n

<\/h1>\n\n\n\n

\"\"OLIVIA THOMSON<\/a><\/p>\n\n\n\n

\"The<\/figure>\n\n\n\n

The Mount Keith operation is part of BHP’s Nickel West business. Image: BHP.<\/p>\n\n\n\n

Following Wyloo\u2019s decision<\/a> to place the Cassini, Long and Durkin nickel mines under care and maintenance, BHP has announced that it will pause part of its Kambalda processing operations in Western Australia.<\/p>\n\n\n\n

Wyloo is a major supplier to BHP\u2019s nickel concentrator in Kambalda, following its $760 million acquisition<\/a> of Mincor Resources last year.<\/p>\n\n\n\n

Wyloo\u2019s decision to cease mining in Kambalda means that BHP can no longer operate parts of its Kambalda concentrator.<\/p>\n\n\n\n

\u201cThe decision by Wyloo to suspend its operations means it will no longer be viable to continue operating parts of the Kambalda concentrator from mid-year,\u201d BHP Nickel West asset president Jessica Farrell told the ABC<\/a>.<\/p>\n\n\n\n

\nhttps:\/\/c6abc0d098afcfaf2e7c9153965d3a81.safeframe.googlesyndication.com\/safeframe\/1-0-40\/html\/container.html\n<\/div><\/figure>\n\n\n\n

\u201cBHP will transition the Kambalda concentrator\u2019s crushing, milling and flotation circuits into care and maintenance from June 2024.\u201d<\/p>\n\n\n\n

BHP\u2019s decision is said to result in about half of the concentrator\u2019s workforce losing their jobs by the middle of this year.<\/p>\n\n\n\n

\u201cWe will work closely with our people to support them,\u201d Farrell said.<\/p>\n\n\n\n

The Sydney Morning Herald<\/a><\/em> reported that the processing plant will continue to dry concentrate from other miners.<\/p>\n\n\n\n

Farrell described Nickel West as a \u201ccomplex business\u201d that combines underground mining operations, third party supply, on-site smelting, downstream refining and a multi-stage supply.<\/p>\n\n\n\n

\u201cWe are looking at a range of options to remain globally competitive in a very tough operating environment,\u201d she said<\/a>.<\/p>\n\n\n\n

\u201cCosts have risen sharply and continue to go up while prices have fallen as new supply comes into the market.\u201d<\/p>\n\n\n\n

BHP revealed<\/a> in its latest operational review that it was evaluating options to \u201cmitigate the impacts of the sharp fall in nickel prices\u201d.<\/p>\n\n\n\n

\u201cThe nickel industry is undergoing a number of structural changes and is at a cyclical low in realised pricing. Nickel West is not immune to these challenges,\u201d the company said.<\/p>\n\n\n\n

\u201cOperations are being actively optimised, and options are being evaluated to mitigate the impacts of the sharp fall in nickel prices. Given the market conditions, a carrying value assessment of the group\u2019s nickel assets is ongoing.\u201d<\/p>\n\n\n\n

BHP is not the only miner operating in Australia to make major changes in light of recent nickel price slumps.<\/p>\n\n\n\n

Chalice Mining announced yesterday<\/a> that it would reduce expenditure by 40 per cent, with its managing director and chief executive officer (CEO) Alex Dorsch saying the changes will provide \u201cflexibility to navigate\u201d current market conditions.<\/p>\n\n\n\n

First Quantum Minerals has also scaled back<\/a> operations at its Ravensthorpe nickel mine in WA.<\/p>\n\n\n\n

Last month, Panoramic Resources and its subsidiaries PAN Transport and Savannah Nickel Mines entered<\/a> voluntary administration, with its directors appointing administrators as a result of a continuous decline in nickel prices.<\/p>\n\n\n\n

Around the same time, IGO paused<\/a> construction of the mechanised materials handling system at its Cosmos nickel operation.<\/p>\n\n\n\n

Despite nickel headwinds currently affecting Australian miners, not all appears to be dour.<\/p>\n\n\n\n

Nickel is now one of six minerals on Australia\u2019s new strategic materials list<\/a>. The list identifies commodities that are essential for the energy transition but aren\u2019t vulnerable enough to meet the critical minerals list criteria.<\/p>\n\n\n\n

Less than a month after the release of the strategic minerals list, Federal Resources Minister Madeleine King voiced support<\/a> for a \u2018green nickel price premium\u2019, which would differentiate between the Australian-produced nickel that follows strong environmental, social and governance (ESG) standards and the \u2018dirty\u2019 nickel produced in countries such as Indonesia.<\/p>\n\n\n\n

The pricing structure has been backed by Andrew Forrest and Wyloo CEO Luca Giacovazzi.<\/p>\n\n\n\n

With all the recent shake-ups, the future of Australian nickel is yet to be seen.<\/p>\n","protected":false},"excerpt":{"rendered":"

OLIVIA THOMSON The Mount Keith operation is part of BHP’s Nickel West business. Image: BHP. Following Wyloo\u2019s decision to place the Cassini, Long and Durkin nickel mines under care and maintenance, BHP has announced that it will pause part of its Kambalda processing operations in Western Australia. Wyloo is a major supplier to BHP\u2019s nickel concentrator in … Continue reading “BHP shuts down WA nickel processing plant”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[6],"tags":[],"class_list":["post-8523","post","type-post","status-publish","format-standard","hentry","category-mines-and-quarry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-2dt","jetpack-related-posts":[{"id":8053,"url":"https:\/\/yinghuiinternational.com\/index.php\/2021\/10\/04\/bhp-closes-in-on-ev-market-with-first-nickel-sulphate\/","url_meta":{"origin":8523,"position":0},"title":"BHP closes in on EV market with first nickel sulphate","author":"yinghui","date":"October 4, 2021","format":false,"excerpt":"Nickel West. 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