BHP sells Kambalda plant to Gold Fields as Nickel West assessment continues
BHP has agreed to promote its mothballed Kambalda nickel concentrator and related exploration tenements to Gold Fields, as uncertainty continues over the way forward for the mining large’s broader Nickel West industry in Western Australia.
The monetary phrases of the transaction haven’t been disclosed.
The Kambalda concentrator beforehand processed nickel ore from quite a lot of smaller regional mines however has remained idle after deteriorating nickel costs compelled producers to curtail operations.
The facility was in the end mothballed in 2024 following the closure of close by mines operated by Wyloo Metals.
Gold Fields sees strategic worth
Gold Fields operates the close by St Ives gold mine and plans to evaluate whether or not the Kambalda development projects may help future gold or nickel processing alternatives.
The related exploration floor can also be near areas the South African mining group has explored for many years.
The buy comes at an fascinating time for Gold Fields, which not too long ago made a A$38.7 billion takeover method for Northern Star Resources.
Northern Star rejected that proposal, arguing it materially undervalued the corporate, however Gold Fields has continued to spotlight potential operational synergies between their Western Australian belongings.
BHP, in the meantime, remains to be reviewing the way forward for Nickel West.
The portfolio consists of mines at Mt Keith and Leinster, the Kalgoorlie nickel smelter and Kwinana refinery, with a remaining resolution anticipated by February 2027.
The Kambalda sale illustrates the dramatic restructuring underway in Western Australia’s nickel trade following years of weak costs and Indonesian provide development, whereas additionally giving Gold Fields one other strategic foothold in one among Australia’s most necessary mining areas.
