BHP to acquire nickel project in Western Australia

BHP has said it will buy the Honeymoon Well Nickel Project in Western Australia’s Goldfields region, along with half of the exploration ventures Jericho and Albion Downs North, from Norilsk Nickel Australian Holdings’ subsidiary MPI Nickel. BHP’s Nickel West operation already owns half the Albion and Jericho joint ventures, and the whole acquisition is 50 km from BHP’s existing Mt Keith mine and 100 km from the firm’s concentrator.

BHP has agreed to acquire the Honeymoon Well Nickel Project comprising the Honeymoon Well development project and a 50 per cent interest in the Albion Downs North and Jericho exploration joint ventures from MPI Nickel Pty Ltd, a wholly owned subsidiary of Norilsk Nickel Australian Holdings BV.

BHP Nickel West is currently a 50 per cent shareholder in the Albion Downs North and Jericho Joint Ventures.

The combined tenement package is located in the northern Goldfields region of Western Australia, approximately 50 kilometres from BHP’s Mt Keith mine and 100 kilometres from its Leinster concentrator. The package includes:

The Wedgetail deposit, which contains a high-grade nickel sulphide resource.

A high quality disseminated sulphide resource in the style of the Mt Keith and Yakabindie ore bodies.

Completion of the agreement is subject to a number of conditions including government and third party approvals.

BHP’s Nickel West Asset President, Eddy Haegel, said: “This is an exciting opportunity to enhance our world-class nickel resource base in Western Australia. Proximity to our existing facilities makes us the natural owners of these deposits, and provides potential options to bring the undeveloped resources to market.”

“Nickel continues to be an essential input into new technologies that will improve the battery storage needed for renewables and electric vehicle manufacturing. Consistent with our strategy to invest in future facing commodities, this transaction gives us access to explore and develop these prospective nickel sulphide tenements.”

Nickel West is a fully integrated mine-to-market nickel business. All nickel operations (open-cut and underground mines, concentrators, a smelter and refinery) are located in Western Australia, with the majority of production sold as high quality nickel metal to overseas markets.