BHP Plans to Sell Australian Nickel Concentrator to Gold Fields

en.Wedoany.com Reported - On October 7, Australian mining group BHP reached a formal agreement with South African gold producer Gold Fields to sell the Kambalda nickel concentrator in Western Australia, along with associated exploration tenements and mineral rights. The transaction remains subject to regulatory approvals and other conditions precedent, and is expected to complete in 2027. The parties did not disclose the transaction amount. Gold Fields will assess long-term options for using the existing processing facilities for gold and nickel ore processing after acquiring the assets.

The assets being sold are part of BHP's Western Australian nickel business portfolio, comprising a suspended nickel concentrator and associated exploration assets. In July 2024, BHP decided to temporarily suspend its Western Australian nickel operations due to global nickel market oversupply. The Kambalda concentrator subsequently entered care and maintenance, and the existing facilities no longer process nickel ore on a normal basis. The scope of this transaction covers only the designated concentrator and related mineral rights, and does not include all of BHP's nickel mines, smelting and refining assets in Western Australia.

Under the agreement, Gold Fields will conduct a detailed assessment of the acquired facilities and exploration tenements, study the suitability of the existing processing equipment for gold and nickel ore beneficiation, and determine future use options for the facilities. Gold Fields currently operates the St Ives gold mine around Kambalda and already has mining, processing and supporting operational facilities in the Goldfields mining region of Western Australia. Whether the nickel concentrator involved in this acquisition will be converted for gold processing, what engineering modifications will be required, and the specific timing for resuming operations at the facilities remain subject to technical assessment and subsequent investment decisions.

Prior to completion of the transaction, BHP will continue to be responsible for on-site management and safety maintenance of the Kambalda assets, and will bear existing environmental, regulatory and cultural heritage protection obligations. Gold Fields plans to offer employment opportunities to employees currently directly involved in maintenance and operational support of the assets, and will engage with local traditional landowners, government agencies and communities regarding future use of the assets. The parties will transfer ownership after regulatory approvals and other transaction conditions are satisfied.

BHP's remaining Western Australian nickel assets remain under temporary suspension, involving facilities including the Kalgoorlie nickel smelter, the Kwinana nickel refinery, and the Mt Keith and Leinster mines. The company plans to review the operating arrangements for these assets no later than February 2027, with options including sale, continued suspension of production, resumption of operations or closure. The Kambalda asset sale agreement does not determine the final disposition of BHP's other Western Australian nickel operations.