Proactive Investors - BHP Group (LON:BHPB) told investors it will temporarily suspend its Western Australia Nickel operations from October, amid ‘oversupply’ in the global nickel market which has suppressed sales prices.
The suspension includes the miner’s Nickel West operations and the West Musgrave project.
It will suspend mining and processing operations at various sites, implement a care and maintenance program, but it will continue exploration efforts with the goal of extending the resource life of Western Australia Nickel.
A review of the suspension is planned to be revisited in February 2027.
BHP said the three-year mothballing follows oversupply in the global nickel market and a sharp decline in forward consensus prices.
The miner said it intended to support its workforce and local communities during the suspension, committing to spend US$300 million per year.
“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,” BHP’s Australia president Geraldine Slattery said in a statement.
“We have made the difficult but necessary decision to temporarily suspend the Nickel West operation and West Musgrave project.
She added: “We will continue to invest approximately AU$450 million (US$300 million) per annum in the Western Australia Nickel facilities to enable a potential re-start.
“Western Australia remains an important investment destination for BHP globally, with investment in the State expected to be greater than AU$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."