Madeleine King Reveals Strong Buyer Interest in BHP's Nickel West Sale
Federal Resources Minister Madeleine King has disclosed that there is "a lot of interest" in BHP's mothballed Nickel West business, fueling speculation that a sale agreement could be finalized in the near future. This announcement was made during a conference in Melbourne on Tuesday, where Minister King addressed questions about the potential sale of Western Australia's key nickel mining and refining operation.
Foreign Investment Review Board's Role in the Sale
When asked whether the Foreign Investment Review Board (FIRB) would impose a blanket ban on Chinese entities acquiring BHP's WA nickel assets, Minister King emphasized that FIRB decisions are "taken project by project." She further revealed that multiple buyers are already lined up for Nickel West, highlighting the asset's importance to the state's economy.
"That (Nickel West) is a really important asset and there's been a lot of interest in it," Ms King stated. "I'm really glad we were able to work with BHP when they made their decision to make sure that it would be able to function in future."
Background on Nickel West and the Sale Process
BHP placed its sprawling WA nickel arm, which previously sustained 3000 jobs, into care and maintenance in October 2024. According to industry sources, the sale process was initiated last October. The front-runners for acquiring Nickel West are believed to include:
- Glencore
- Andrew Forrest's Wyloo
- South Korean steel and renewable battery manufacturing heavyweight POSCO
- Japanese metals refiner Sumitomo Metal Mining
The sale figure is expected to be a nominal sum, given that Nickel West comes with billions of dollars worth of rehabilitation liabilities. This adds a layer of complexity to the transaction, as potential buyers must account for these environmental responsibilities.
BHP's Stance and Future Decisions
BHP has remained cautious about the status of the sales process and any potential buyer interest. Chief executive Mike Henry commented last week, "We've said that we are canvassing options around potential divestment of (Nickel West) if there's somebody else who would be more likely to get things back and going in the near term. That process remains underway."
The mining giant has indicated that it will make a final decision on whether to permanently shut down Nickel West by February next year. On Tuesday, BHP declined to respond to Minister King's comments, maintaining its reserved approach to the ongoing negotiations.
This development underscores the critical nature of Nickel West to WA's mining sector and the broader Australian economy, with Minister King's remarks signaling a positive outlook for its future under new ownership.
