BHP weighs future of Western Australia's sole nickel smelter amid bailout pleas
BHP will decide within six months whether to restart its mothballed Kalgoorlie Nickel Smelter, while a WA Liberal MP urges federal financial aid similar to recent smelter bailouts.
BHP is expected to announce within the next six months whether its Kalgoorlie Nickel Smelter will be revived, sold, or permanently closed, following a review of its Nickel West assets due by February 2027. The plant, Western Australia’s only nickel smelter, was placed in temporary suspension in 2024 after 51 years of operation. Liberal MP Rick Wilson, whose O'Connor electorate includes Kalgoorlie-Boulder, is pressing the federal government for a bailout akin to the $1.67 billion already allocated to four east-coast smelters, citing nickel’s recent addition to the Critical Minerals List.
The Industry Minister’s office affirmed nickel’s strategic importance but stopped short of confirming new funding. Local leaders, including Kalgoorlie-Boulder mayor Glenn Wilson, warn that short-term handouts do not address the underlying viability of heavy industry in the region. The broader WA nickel sector is also struggling, with Glencore’s Murrin Murrin written down to zero value and IGO’s Nova set to close and be repurposed for lithium processing.
Why it matters
The decision will affect hundreds of jobs and the future of Australia’s only domestic nickel smelter, a key component of the critical minerals supply chain.
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