By: Reuters

Global miner BHP BHP.AX said on Wednesday it had agreed to sell the Kambalda Nickel Concentrator and a package of associated tenements and mineralisation rights in Western Australia to Johannesburg-listed Gold Fields GFIJ.J.

Here are some more details:

Financial terms of the transaction are confidential, BHP said in an emailed response to Reuters.

The company temporarily suspended its Western Australia Nickel assets in early 2024 following oversupply in the global market.

The downturn, driven in part by rising Indonesian supply and weaker prices, prompted Australia later that year to designate nickel a critical mineral, making the industry eligible for billions of dollars in government support.

BHP said on Wednesday it would review the future of its remaining nickel assets by February 2027, assessing options including divestment, continued suspension, a restart or closure.

Gold Fields will evaluate options for the long-term use of the concentrator and offer employment to people directly supporting the asset, BHP said.

The agreements are subject to regulatory approvals and other conditions. The completion is expected during 2027.
Shares of BHP were down 0.8% at A$62.38, as of 2355 GMT.

(Reporting by Roshan Thomas in Bengaluru; Editing by Anil D'Silva, Shilpi Majumdar and Subhranshu Sahu)