BHP Scales Back: Contractor Workforce Reportedly Trimmed At West Musgrave Project In Western Australia

BHP Group Ltd BHP reportedly disclosed that certain contractors at its West Musgrave project in Western Australia have departed amid deliberations on freezing its nickel division due to a steep price decline.

BHP has trimmed approximately a quarter of the contractor workforce at the site, affecting around 100 individuals at the West Musgrave site, according to a report from Reuters.

The decision follows BHP’s announcement last month during its half-year results of reviewing the mine’s development timeline and recent warnings from senior executives about challenges in the nickel sector, the report noted.

BHP spokesperson reportedly stated that the ongoing evaluation of the West Musgrave project’s development and capital expenditure resulted in a scaled-down work scope with certain contractors.

The prior owner, Oz Minerals, estimated a $1.12 billion development cost for West Musgrave, targeting initial production by the second half of 2025.

CEO Mike Henry reiterated the company’s commitment to promptly resolving the matter, acknowledging challenges in winding down refining and smelting activities.

BHP flagged a $2.5 billion non-cash impairment charge related to the division during its half-year results.

Price Action: BHP shares are trading higher by 0.79% at $56.11 in premarket on the last check Monday.

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