Later that yr the world’s high mining firm, greater than $30 billion away from its nearest rival, additionally waved away bidders for Nickel West, stated to be Glencore and Chinese language nickel group Jinchuan, in a sale put as excessive as $1 billion.
Three years later, hoping to capitalize on the rosy view of nickel’s function within the electrical automobile story, BHP determined reasonably than shut down the division, to construct a sulfate plant to show Nickel West right into a “mine-to-market” operation.
In July this yr, BHP admitted defeat. Not for an absence of attempting. BHP says it spent $3 billion to maintain and increase the division since 2020 which now included the Kwinana nickel refinery, Kalgoorlie nickel smelter, Mt Keith and Leinster mines and the West Musgrave venture it inherited from final yr’s $6.4 billion Oz Minerals takeover.
BHP continues to be calling it a “non permanent suspension” however judging by the corporate’s outlook accompanying its year-end outcomes launched this week non permanent might grow to be a very long time.
Whereas the long run advantages of the vitality transition stays optimistic for nickel, the “demand signposts” from the stainless-steel and EV markets BHP stated it has noticed because the February announcement of the overview had been all damaging whereas the availability response has not been sufficient.
“On the availability aspect of the trade, we noticed further curtailments and venture suspensions being publicly introduced, slower than anticipated mining approvals in Indonesia each pre-and-post the presidential election, the LME suspending Russian steel deliveries in response to US and UK sanctions, and civil unrest in New Caledonia (~6% of world nickel mined provide).
“The online impression of those elementary signposts was not sufficient to change our view that the nickel trade is probably going in an prolonged run of annual surpluses stretching into the last decade’s last third.”
Nickel costs recovered from six month lows this week, scaling the $17,000 a tonne degree, however stays firmly in a bear market, buying and selling down greater than 20% from highs reached solely three months in the past.