BHP has agreed to sell the Kambalda Nickel Concentrator (KNC) as well as a group of related tenements and mineral rights in Western Australia (WA) to Gold Fields.
The completion of this transaction is contingent on meeting certain conditions, including regulatory clearance, and is expected to take place during the 2027 calendar year.
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With this arrangement, Gold Fields will assume control of the concentrator and exploration properties.
The company plans to assess the long-term potential of the facility, including prospects for using it for both gold and nickel processing.
Gold Fields will provide employment opportunities for those currently working directly with the asset and intends to engage with Traditional Owners, government authorities, local communities and industry stakeholders as it evaluates the newly acquired sites.
In the interim period, BHP will continue to operate the KNC, maintaining its obligations in areas such as environmental management, regulatory compliance and cultural heritage.
The company stated its intention to work closely with Gold Fields to ensure an orderly transition once the necessary requirements are fulfilled.
This divestment comes after BHP’s July 2024 announcement of a temporary halt to its Western Australia Nickel operations, which followed a surplus in global nickel supply.
BHP Western Australia Nickel vice-president Annabelle Blom said: “Today is a positive outcome and it provides certainty for our employees, the Goldfields region and the local community.
“Gold Fields is a respected operator with established relationships with Traditional Owners and a strong, long-term presence in the Goldfields region.
“Nothing is more important than safety. BHP will continue to care for our people and manage the asset safely, responsibly and in partnership with our workforce through to completion of the transaction.”
While the KNC and associated tenements are being sold, the rest of BHP’s Western Australia Nickel assets remain temporarily suspended.
A review of their future is due to be completed by February 2027, with options such as sale, continued suspension, restarting operations or closure to be considered in consultation with various stakeholders.
Last month, BHP suspended operations at the Escondida copper mine in northern Chile following the death of a worker during maintenance activities.
