Forrest’s privately owned company plans to retain most of its 44 employees at its Cassini mine 130 kilometres south of Kalgoorlie and a group of mines about 50 kilometres south of the mining town into care and maintenance on 31 May and work with its mining contractor to redeploy its workers.
Wyloo is the major source of ore for BHP’s nickel processing plant at Kambalda.
BHP Nickel West Asset President Jessica Farrell said Wyloo’s decision made processing third-party ore into concentrate at Kambalda uneconomic. She said the circuit would shut down in June,with the loss of about 20 jobs. The plant will continue to dry concentrate from other miners.
Farrell said BHP’s WA nickel business was a complex combination of underground mining operations,third-party supply,on-site smelting and downstream refining.
“Costs have risen sharply and continue to go up while prices have fallen as new supply comes into the market,” she said.
In the three months to December,the price of nickel sold by BHP fell 17 per cent to $US16,812 a tonne,and BHP is now cutting costs and considering writing down the value of the business that employs 2500 workers at three mines,ore concentrators at Kambalda and Kalgoorlie and a refinery south of Perth.
Last week,BHP said it would announce its plans for its WA nickel business in February.