BHP Group Ltd., renowned as the world’s largest miner, has reportedly suspended approximately a quarter of the workers engaged in constructing its West Musgrave nickel and copper project in Western Australia.
This decision, as per a report from the Australian Financial Review (AFR), has led to a reduction in the project’s workforce from approximately 400 to 300 individuals. The AFR did not specify the source of this information.
The A$1.7 billion project, acquired from OZ Minerals Ltd. last year, has witnessed a downsizing of its workforce, although a company spokesperson emphasized that the departure of some workers does not signify the project’s termination, as per the AFR.
In February, BHP recorded a $2.5 billion impairment on the value of its Australian nickel assets, prompted by a surge in the supply of the battery metal, which consequently pushed down prices.
In response, the miner announced plans to close its Kambalda concentrator, responsible for ore processing, and potentially idle its other Australian nickel assets following a comprehensive review.
The price of nickel, a metal traditionally employed to reinforce steel and now integral to the energy transition due to its application in electrification and batteries, has experienced a significant decline of 40% since the commencement of 2023 on the London Metal Exchange.
