BHP Group has revealed its intention to make a decision regarding the future of its nickel operations in Western Australia in the upcoming months, as it strives to enhance operations and maintain value. The review of the Western Australian nickel operations comes in light of declining nickel prices attributed to a surge in supply from Indonesia, which has raised concerns about production in places like Australia where operating costs are higher.
CEO Mike Henry emphasized the company's commitment to evaluating the Western Australian nickel operations to optimize performance and viability. The global miner has also adjusted its production forecast for metallurgical coal in Queensland for fiscal 2024, citing the impact of adverse weather conditions such as tropical cyclones and operational constraints that led to a revision from an initial estimate of 23 million to 25 million tonnes down to 21.5 million to 22.5 million tonnes. Despite these challenges, BHP reported an increase in third-quarter iron ore production, driven by advancements in its South Flank mine and operational enhancements in Pilbara. The South Flank mine is on course to achieve its full production capacity of 80 million tonnes per annum by the conclusion of fiscal 2024. BHP's iron ore output from its Western Australian mines reached 68.1 million tonnes during the three-month period ending March 31, representing a 3% growth from the previous year's production of 66.2 million tonnes.