BHP crashes after decision to halt nickel production in Western Australia

BUZZ-BHP falls after decision to cease nickel operations in Western Australia

** Shares of the mining company BHP Group BHP.AX Down by up to 1.1% to A$43,090, the lowest since July 2

** After the stock market closed on Thursday, BHP announced that it suspend its nickel operations in Western Australia from October as it struggles with falling metal prices and oversupply on the global market

** BHP intends to review its decision to temporarily suspend by February 2027

** The company plans to invest approximately $300 million annually after a transition period to support a possible restart of the nickel business.

** Adds that the Nickel Unit expects an underlying EBITDA loss of approximately $300 million in FY24 and the Company will record a further $300 million impairment charge in addition to the $3.5 billion previously announced

** Analysts at Macquarie say BHP’s decision shows the company had limited options to continue operations

** Brokerage says a concentrated focus on copper growth is now paramount to reshape BHP’s portfolio ahead of structural decline in iron ore market

** At the last closing price, the share has fallen by 13.6% since the beginning of the year

Reporting by Himanshi Akhand from Bengaluru