Critical Minerals and Energy Intelligence

BHP Looking to Expand Mt. Keith Nickel Operation

As reported by Mining Weekly,BHP’s Nickel West is expecting to make a final investment decision on the Mt Keith concentrator expansion by the end of the financial year. BHP plans to install a 16 MW semi-autogenous grinding (SAG) mill at the Mt Keith site in Western Australia. Alongside upgrades to the flotation circuit, this is going to increase the concentrator’s annual throughput from 10.5 million tonnes to 12 million tonnes—eventually reaching 15 million tonnes.

BHP says the expansion is possible because Yakabindie is now in full production and furthermore that the company is going to be restarting mining at the next stage of the Mt Keith pit, which means “mining activity this year will ramp up by about 50%.”

Elsewhere in the Nickel West operation, the Leinster concentrator has been performing strongly. Recent upgrades there have driven record production levels, requiring a corresponding boost in mining output.

Looking ahead, Haegel pointed to a number of opportunities to lift production even further. Chief among them: continued exploration at the Cliffs underground mine, with the aim of extending its life.

BHP is also making progress on its clean energy goals. The company recently announced a partnership with Goldfields TransAlta to build two solar farms and a battery system to help power operations at Mt Keith and Leinster. The move is expected to cut emissions from electricity use at the sites by 12% compared to 2020 levels.

The Northern Goldfields solar project includes a 27.4 MW solar farm at Mt Keith and a 10.7 MW solar farm with a 10.1 MW battery system at Leinster. The renewable installations will replace electricity that’s currently generated using diesel and gas turbines.

I’ve previously written a piece all about improving carbon performance in mining, which was published in The Northern Miner and is worth reading if you want to understand how the sector can produce more cleanly. It’s good to see the nickel sector aiming at a cleaner life, just as it’s good to see the majors putting money into nickel production. Nickel demand is continuing to grow fast and when the big boys start committing capital, it shows their confidence that the growth is going to continue for the long term.

Anthony Milewski

Chairman, Nickel 28 Capital

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