BHP Group has acknowledged the departure of some contractors from its West Musgrave nickel and copper project in Western Australia, as the global mining giant evaluates the potential suspension of its nickel division in response to a significant price downturn. While specific details regarding the number of affected jobs were not disclosed, reports indicate that approximately a quarter of the workforce, consisting of 400 individuals engaged in project construction, has been placed on stand down. BHP’s Australian mine-to-refinery operations, catering to diverse products like nickel sulphate for the electric vehicle sector, came under scrutiny last month following a surge in supply from Indonesia that impacted market prices. The division, employing around 3,000 workers, faced challenges amid heightened competition from Indonesian nickel production, prompting BHP to initiate a review process. Outgoing Chief Financial Officer David Lamont emphasized the necessity of reassessing the division in light of prevailing market conditions, citing a substantial portion of the Australian nickel market being affected by production shifts and pricing pressures. BHP’s recent disclosure of a $2.5 billion non-cash impairment charge related to the division underscores the impact of market dynamics on its strategic decisions. The company highlighted potential implications on the West Musgrave project’s development pace due to the price decline, leading to adjustments in work scope with certain contractors as part of ongoing assessments.
BHP Confirms Removal of Contractors from West Musgrave Project Amid Nickel Division Review