Mining giant BHP has announced it’s putting its WA nickel mines on ice for at least three years, blaming an “oversupply in the global nickel marketplace.”

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In a statement on Thursday afternoon, BHP said it would begin suspending its operations at the Kwinana nickel refinery in Perth, the Kalgoorlie smelter and its major mines at Mt Keith and Leinster from October.

It said the decision will be reviewed in February 2027 and it will continue to invest about $450 million a year to support a potential restart.

In a statement, WA Premier Roger Cook said the move would affect thousands of workers.

“My government will do whatever it takes to support those workers and our regional communities through this difficult time,” he said.

The affected mines include BHP’s Nickel West operations and West Mustgraves project in the Goldfields.

The miner said projections indicate nickel prices over the next five years would fall sharply, giving way to the strong growth of cheaper nickel produced elsewhere.

“Every frontline employee will be offered another role within BHP, and best endeavours will also be made to identify redeployment opportunities for other employees engaged in the day-today operations of Western Australia Nickel,” BHP’s president Geraldine Slattery said in a statement.

The company was expected to address the media in a conference call on Thursday evening.

The decision was not unexpected, with the miner announcing its intention to mothball its nickel operations earlier this year.

Mines and Petroleum Minister David Michael said the move demonstrated the volatile nature of the market.

“This is a reminder that the mining industry is subject to cyclical commodity price fluctuations and other market forces beyond its control,” he said.

“I am hopeful that many employees will remain with BHP given its commitment to redeploy all front-line workers.”

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