Gold Fields is expanding its nickel footprint in Western Australia by acquiring BHP’s Kambalda Nickel Concentrator and a package of associated tenements and mineralisation rights, strengthening its position in one of Australia’s established nickel regions.

The Johannesburg-listed miner will take control of the processing facility as BHP reshapes its nickel portfolio after suspending its Western Australia operations amid a global supply glut. Financial terms of the transaction were not disclosed.

The deal gives Gold Fields access to existing nickel infrastructure at a time when Australia is backing the sector as a critical mineral industry. Nickel was designated a critical mineral in 2024 after a sharp downturn driven partly by rising Indonesian supply and weaker prices.

Gold Fields weighs Kambalda’s future

Gold Fields will evaluate options for the long-term use of the Kambalda concentrator and plans to offer employment to people directly supporting the asset, BHP said.

The acquisition could give Gold Fields greater flexibility to assess the commercial potential of the concentrator and surrounding mineralisation as market conditions evolve.

BHP temporarily suspended its Western Australia Nickel assets in early 2024 as the global market was hit by oversupply. The resulting pressure on producers contributed to Australia making nickel eligible for billions of dollars in potential government support.

BHP prepares broader nickel review

The Kambalda transaction is also part of a wider rethink of BHP’s nickel business. The mining giant said it will review the future of its remaining nickel assets by February 2027.

The review will consider several options, including divestment, continued suspension, a restart or closure of the assets.

Gold Fields is a globally diversified gold producer with eight operating mines spanning South Africa, Australia, Ghana, Chile and Peru. Its geographically diverse portfolio gives the company exposure to several of the world’s major gold-producing regions.

For Gold Fields, the transaction provides an opportunity to secure established infrastructure and mineral rights while the global nickel industry works through a period of excess supply and weak prices.

The agreements are subject to regulatory approvals and other conditions, with completion expected during 2027. BHP said the financial terms remain confidential.