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BHP temporarily halts nickel production in Western Australia By Reuters

BHP temporarily halts nickel production in Western Australia By Reuters

(Reuters) – Australia’s BHP Group (NYSE:) will temporarily suspend operations at Nickel West and its West Musgrave project from October, the mining group said on Thursday, as it suffers from a collapse in metal prices and an oversupply on the global market.

The world’s largest listed mining company intends to review its decision to temporarily suspend its nickel operations in Western Australia by February 2027.

© Reuters. FILE PHOTO: A tonne of BHP Group nickel powder is stored in a warehouse at the Nickel West division south of Perth, Australia, August 2, 2019. REUTERS/Melanie Burton/File Photo

“We have not been able to overcome the significant economic challenges created by a global oversupply of nickel,” said Geraldine Slattery, president of BHP in Australia.

After a transition period, BHP will invest around $300 million each year to support a possible restart of the nickel business.