BHP has agreed to sell its mothballed Kambalda nickel concentrator and associated exploration tenements to Gold Fields, as uncertainty continues over the future of the mining giant’s broader Nickel West business in Western Australia.
The financial terms of the transaction have not been disclosed.
The Kambalda concentrator previously processed nickel ore from a number of smaller regional mines but has remained idle after deteriorating nickel prices forced producers to curtail operations.
The facility was ultimately mothballed in 2024 following the closure of nearby mines operated by Wyloo Metals.
Gold Fields sees strategic value
Gold Fields operates the nearby St Ives gold mine and plans to assess whether the Kambalda infrastructure could support future gold or nickel processing opportunities.
The associated exploration ground is also close to areas the South African mining group has explored for decades.
The purchase comes at an interesting time for Gold Fields, which recently made a A$38.7 billion takeover approach for Northern Star Resources.
Northern Star rejected that proposal, arguing it materially undervalued the company, but Gold Fields has continued to highlight potential operational synergies between their Western Australian assets.
BHP, meanwhile, is still reviewing the future of Nickel West.
The portfolio includes mines at Mt Keith and Leinster, the Kalgoorlie nickel smelter and Kwinana refinery, with a final decision expected by February 2027.
The Kambalda sale illustrates the dramatic restructuring underway in Western Australia’s nickel industry following years of weak prices and Indonesian supply growth, while also giving Gold Fields another strategic foothold in one of Australia’s most important mining regions.
