BHP Australia boss Geraldine Slattery bullish on WA Nickel’s return after 2027

BHP’s Australia boss believes the nickel market could turn a corner by 2028 and says a tight labour market in Australia will help the Big Australian absorb many of the 3000 WA Nickel castaways.

BHP on Thursday announced it would “temporarily suspend” its WA Nickel arm from October until at least February 2027 amid an ongoing supply glut from Indonesian mines. BHP had previously called the Indonesian supply tsunami a “structural” change in the market.

BHP Australia president Geraldine Slattery told media after the company’s announcement it was “committed” to bringing WA Nickel, which counts the Nickel West mining operations as the centrepiece, back into production.

“So, I think it’s been clear that the basis of our decision today is relative to the market outlook through to the end of the decade, we are optimistic on the market outlook from that point forward, based on transport electrification,” she said.

“Now, of course, there’s uncertainty with that, but we’ve got sufficient conviction to maintain investment in the option of bringing the Nickel West business back . . . that’s why we’ve been very specific about the temporary suspension and the investment in exploration to maintenance and integrity of the facilities.”

BHP will invest approximately $450 million annually in the nickel facilities to enable a potential re-start, including keeping 400 people directly employed in the business division.

“There is uncertainty for sure. We’ve got conviction on the market beyond the late 2020s, and committed to coming back to the market no later than February 2027 to advise on that,”

It has also stated “every frontline employee will be offered another role within BHP”. WA Nickel currently has about 3000 employees overall and 1600 “frontline” jobs.

Ms Slattery said “frontline” relates to supervisor, maintenance and operator jobs on site.

“We’ve looked at the numbers and looked at our vacancy is well recognised, the labour market is very tight in WA and Australia more broadly,” she said.

“We value our people, we value their capabilities and training, and we’ve looked at what (BHP) will take across Western Australian iron ore or potentially South Australia copper or another asset.

“That’s essentially how we come up with the numbers. It’s based on our evaluation of our own workforce needs.”

Australian Workers Union Brad Gandy said BHP now has to do the right thing after the “deeply disappointing” announcement to suspend Nickel West.

“BHP has made billions off the back of West Australian workers and their labour but is now up to them to do the right thing and ensure their workers are sheltered from the oncoming storm,” he said.

“The AWU calls upon BHP to ensure every worker that does not wish to be made redundant is given priority and a choice to be redeployed.”