BHP (ASX:BHP,NYSE:BHP,LSE:BHP) agreed to sell its Kambalda Nickel Concentrator and a package of surrounding tenements to South Africa’s Gold Fields (NYSE:GFI), carving off a key asset from its suspended nickel operations in Western Australia.
The transaction transfers ownership of the Kambalda processing facility and associated mineralization rights to Gold Fields, with completion targeted for calendar year 2027, subject to regulatory approvals.
While the agreement hands Gold Fields control of the Kambalda facility, the remainder of BHP’s Western Australia Nickel operations remains suspended. BHP plans to review the rest of the business by February 2027 to evaluate options that include divestment, continued suspension, operational restart, or permanent closure.
Meanwhile, Gold Fields will assess long-term operational uses for the concentrator and offer employment to personnel directly supporting the asset. BHP will continue to manage the facility until the transaction completes.
“Today is a positive outcome and it provides certainty for our employees, the Goldfields region and the local community,” BHP Vice President for WA Nickel Annabelle Blom said in a statement. “Gold Fields is a respected operator with established relationships with Traditional Owners and a strong, long-term presence in the Goldfields region.”
The agreement comes shortly after Gold Fields suffered a major rejection in Australia. On September 28, Australia’s largest gold producer, Northern Star Resources (ASX:NST,OTCPL:NESRF), unanimously turned down an unsolicited US$27.09 billion cash-and-stock takeover proposal from Gold Fields.
Northern Star’s board rejected the offer, stating it undervalued the company ahead of key operational milestones, including the ramp-up of its Fimiston Mill, while exposing its investors to Gold Fields equity risks.
“Gold Fields has sought to acquire one of the world’s premier gold portfolios at a price that falls well short of what the Board considers to be its fundamental value and at a highly opportunistic time,” Northern Star Chairman Michael Chaney said in a statement rejecting the proposal.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
