Australia’s BHP Group announced it will temporarily suspend its Nickel West operations and West Musgrave project from October due to a plunge in metal prices and global oversupply. The world’s largest listed miner plans to review this decision by February 2027.
“We have not been able to overcome the substantial economic challenges driven by a global oversupply of nickel,” said Geraldine Slattery, BHP’s Australia president.
BHP will invest around $300 million annually after a transition period to support a potential restart of the nickel business. Despite recovering from three-year lows, nickel prices remain down by over 25% from a year ago. The global market faces pressure from Indonesia’s emergence as a supply powerhouse and reduced nickel use in batteries, contributing to a 40% price slump in the past year. Australia’s battery metals producer IGO also paused a study on battery chemicals production amid low nickel prices.