Global miner BHP is evaluating options for its Nickel West unit to mitigate the impacts of the sharp fall in nickel prices, Kallanish reports.

BHP says in a statement that the nickel industry is undergoing some structural changes and is at a cyclical low in realised pricing, and Nickel West is not immune to these challenges.

“Operations are being actively optimised, and options are being evaluated to mitigate the impacts of the sharp fall in nickel prices. Given the market conditions, a carrying value assessment of the group’s nickel assets is ongoing,” the miner adds. 

The company’s nickel production for the first half of financial year 2024 (ended 31 December 2023) increased due to improved performance, and a shorter shutdown period at the Kalgoorlie Smelter offsetting downtime at the Kwinana Refinery.

Its nickel production for the period rose 4% on-year to 39,800 tonnes from 38,000 t in the first half of FY23. The average realised price for nickel, however, fell 24% in the same period to $18,602/t from $24,362/t.

As for Q2 FY24, nickel output stood at 19,600 t, up 11% from the first half of FY23 but down 3% from Q1 FY24. 

The group’s nickel production guidance remains unchanged at between 77,000-87,000 t for FY24.