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BHP to Sell Few Nickel Assets: What's Next for Its Nickel Business?
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Key Takeaways
BHP will divest its Kambalda Nickel Concentrator and related tenements to Gold Fields, subject to approvals.
BHP's Western Australia Nickel business posted a $255 million EBITDA loss in fiscal 2026.
BHP will review its remaining nickel assets by February 2027, weighing sale, restart, suspension or closure.
BHP Group (BHP - Free Report) has agreed to divest its Kambalda Nickel Concentrator (KNC) along with a package of tenements and mineralization rights to Gold Fields Limited (GFI - Free Report) . This is part of BHP’s efforts to restructure its Western Australia nickel business.
The transaction is expected to be completed during calendar 2027, subject to regulatory approvals and other conditions. Financial details were not disclosed. BHP will continue to manage the asset safely and responsibly until the transaction is completed.
The concentrator has a nominal ore processing capacity of 1.6 million tons per year and can produce concentrate containing approximately 13% nickel. Gold Fields plans to conduct a detailed assessment of the acquired assets and evaluate their potential long-term use for both gold and nickel processing.
Gold Fields is a globally diversified gold producer with eight operating mines in Australia, South Africa, Ghana, Chile and Peru and one project in Canada.
BHP’s Nickel Operations Remain Under Review
In July 2024, BHP announced the temporary suspension of its Western Australia Nickel business, comprising Nickel West and the West Musgrave project. This was due to a sharp deterioration in market conditions caused by an oversupply of nickel and increased availability of lower-cost supply.
Western Australia Nickel holds the majority of tenements hosting nickel sulfide mineral resources in the Agnew-Wiluna belt, Western Australia. The Nickel West asset consists of open-cut and underground mines, concentrators, and a smelter and refinery for downstream processing. The West Musgrave project is a greenfield nickel and copper project in Western Australia's West Musgrave Ranges. The project construction was temporarily suspended at around 30% completion.
Western Australia Nickel reported an underlying EBITDA loss of $255 million in fiscal 2026 compared with a loss of $589 million in fiscal 2025 as operations transitioned into temporary suspension in December 2024.
BHP plans to review the future of its remaining Western Australia Nickel assets by February 2027. Potential options include divestment, continued suspension, restarting operations or closure.
For BHP, the Kambalda divestment could help streamline its portfolio, although the future of the remaining nickel assets remains unresolved. The company’s broader investment case remains supported by its diversified exposure to commodities such as iron ore and copper, reducing its dependence on nickel.
Sibanye Stillwater Limited (SBSW - Free Report) has also placed its fully-owned Sandouville nickel refinery in France on care and maintenance since June 30, 2025, amid low nickel prices and elevated operating costs. The last nickel matte delivery from the operation was received in early January 2025.
Sibanye Stillwater has begun consultations with employee representatives on the refinery's future under French labor law. The company is also working with the French government to identify the best possible outcome for all stakeholders.
Vale S.A. (VALE - Free Report) meanwhile produces one of the world's most diverse portfolios of refined nickel under its Vale Base Metals business, serving critical industries in alloys, coatings, batteries, powder metallurgy and chemical applications. Its operations span Canada, the United Kingdom, Japan and Brazil.
In the second quarter of 2026, Vale reported nickel production at 42 kt, up 4.2% year over year. Higher output from Onça Puma, as well as record production at Long Harbour, helped offset the impact of the biennial planned maintenance at Sudbury downstream facilities.
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BHP to Sell Few Nickel Assets: What's Next for Its Nickel Business?
Key Takeaways
BHP Group (BHP - Free Report) has agreed to divest its Kambalda Nickel Concentrator (KNC) along with a package of tenements and mineralization rights to Gold Fields Limited (GFI - Free Report) . This is part of BHP’s efforts to restructure its Western Australia nickel business.
The transaction is expected to be completed during calendar 2027, subject to regulatory approvals and other conditions. Financial details were not disclosed. BHP will continue to manage the asset safely and responsibly until the transaction is completed.
The concentrator has a nominal ore processing capacity of 1.6 million tons per year and can produce concentrate containing approximately 13% nickel. Gold Fields plans to conduct a detailed assessment of the acquired assets and evaluate their potential long-term use for both gold and nickel processing.
Gold Fields is a globally diversified gold producer with eight operating mines in Australia, South Africa, Ghana, Chile and Peru and one project in Canada.
BHP’s Nickel Operations Remain Under Review
In July 2024, BHP announced the temporary suspension of its Western Australia Nickel business, comprising Nickel West and the West Musgrave project. This was due to a sharp deterioration in market conditions caused by an oversupply of nickel and increased availability of lower-cost supply.
Western Australia Nickel holds the majority of tenements hosting nickel sulfide mineral resources in the Agnew-Wiluna belt, Western Australia. The Nickel West asset consists of open-cut and underground mines, concentrators, and a smelter and refinery for downstream processing. The West Musgrave project is a greenfield nickel and copper project in Western Australia's West Musgrave Ranges. The project construction was temporarily suspended at around 30% completion.
Western Australia Nickel reported an underlying EBITDA loss of $255 million in fiscal 2026 compared with a loss of $589 million in fiscal 2025 as operations transitioned into temporary suspension in December 2024.
BHP plans to review the future of its remaining Western Australia Nickel assets by February 2027. Potential options include divestment, continued suspension, restarting operations or closure.
For BHP, the Kambalda divestment could help streamline its portfolio, although the future of the remaining nickel assets remains unresolved. The company’s broader investment case remains supported by its diversified exposure to commodities such as iron ore and copper, reducing its dependence on nickel.
Sibanye Stillwater Limited (SBSW - Free Report) has also placed its fully-owned Sandouville nickel refinery in France on care and maintenance since June 30, 2025, amid low nickel prices and elevated operating costs. The last nickel matte delivery from the operation was received in early January 2025.
Sibanye Stillwater has begun consultations with employee representatives on the refinery's future under French labor law. The company is also working with the French government to identify the best possible outcome for all stakeholders.
Vale S.A. (VALE - Free Report) meanwhile produces one of the world's most diverse portfolios of refined nickel under its Vale Base Metals business, serving critical industries in alloys, coatings, batteries, powder metallurgy and chemical applications. Its operations span Canada, the United Kingdom, Japan and Brazil.
In the second quarter of 2026, Vale reported nickel production at 42 kt, up 4.2% year over year. Higher output from Onça Puma, as well as record production at Long Harbour, helped offset the impact of the biennial planned maintenance at Sudbury downstream facilities.