BHP cuts contractors at Australian nickel project amid price slump
BHP Group, opens new tab said on Monday some contractors at its West Musgrave nickel and copper project in Western Australia had left its operations as the global miner assesses whether it will put its nickel division on ice due to a severe price slump.
The move comes after BHP said it was reviewing the mine's development timeline at its half-year results last month and as senior executives on Monday issued fresh warnings about the difficulties in the nickel sector.
The company said it had cut around a quarter of the contractor workforce at the site, or about 100 people.
"We continue to assess phasing and capital spend for the ongoing development of the West Musgrave project and have reduced the scope of work with some contractors," a BHP spokesperson said.
Prior owner Oz Minerals, which was bought by BHP last year, estimated in December 2022 that it would cost A$1.7 billion ($1.12 billion) to develop West Musgrave, with first production expected in the second half of 2025. $BHP Group Ltd(BHP.US$
BHP's nickel mining and processing business in Australia whose products include nickel sulphate for the electric vehicle industry was put under review last month amid a supply surge from Indonesia that hit prices. It employs around 3,000 people.
BHP's outgoing Chief Financial Officer David Lamont said separately on a call to shareholders on Monday the decision to review the division was necessary given operational losses.
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