BHP Billiton has confirmed long-running speculation that its Nickel West business is potentially up for sale, including the Mt Keith, Cliffs and Leinster mines, as well as the operations’ processing facilities.
BHP today said it was conducting a review of the Nickel West business, following the closure of its Perseverance underground operation in December last year.
The mining giant said the review was consistent with its long-held practice of reviewing its operations, but it would only pursue options that would maximise value for its shareholders.
The announcement follows widespread industry speculation that Goldman Sachs had been appointed in March to sell the operation.
The Nickel West division booked a $151 million loss in the first half of this financial year, but it is expected to stoke significant interest from nickel players Western Areas, Glencore Xstrata, First Quantum Resources and former Xstrata boss Mick Davis's X2 Resources.
A UBS research note released in April suggested that any potential purchaser of the assets would need to secure seven to 10 years of high-quality smelter feed, which would also make Western Areas and Sirius Resources interesting merger or acquisition targets.
Any sale of the BHP Billiton Nickel West assets is understood to need approval from the state government to proceed.
