BHP sets deadline for WA nickel
BHP says it will decide on its WA nickel operations by August, as it continues to weigh whether it will put its struggling Nickel West division into care and maintenance.
BHP slashed $US3.5bn from the value of Nickel West in its half-year accounts, warning that it was considering closing its nickel operations in the face of the tumbling price and the onslaught of cheap nickel from Indonesia. The division employs about 3000 people in WA.
The company said in its March quarter review on Thursday that it expected to make a decision on the longterm future of the division by the time it delivers its full-year results in August.
After hitting a low of $US15,620 a tonne in March, the price of the commodity has staged something of a comeback, last trading on the London Metal Exchange at $US17,625.
Nickel West produced 59,000 tonnes of nickel in the March quarter, up slightly on the same period last year.
Shipments from BHP’s WA iron ore division lifted almost 5 per cent, compared with the March 2023 quarter to 69.8 million tonnes, with mine production also up for the period.
BHP said heavy weather in the Pilbara left it slightly below its production figures for the first nine months of the year, at 210.3 million tonnes, down from 212.6 million tonnes at the end of March 2023.
The March result leaves BHP needing a strong close to the year to meet its 282-294 million tonne annual production guidance, though the company said on Thursday that it still expected to hit its guidance range.
BHP boss Mike Henry said the company was on track to meet copper, iron ore and energy coal guidance for the year, with copper volumes up 10 per cent.
Wild weather in Queensland, including the impact of two cyclones, meant BHP was unlikely to meet its 23-25 million tonne output guidance, Mr Henry said, with the company now forecasting output of 21.5 -22.5 million tonnes.
BHP shares last traded at $44.44.