PERTH (miningweekly.com) – Diversified miner BHP has struck a deal with the Australian arm of major Norilsk Nickel to acquire the Honeymoon Well nickel project, in Western Australia.
The Honeymoon Well nickel project comprises the Honeymoon Well development project and a 50% interest in the Albion Downs North and Jericho exploration joint ventures (JV).
BHP Nickel West is currently a 50% shareholder in the Albion Downs North and Jericho JVs.
“This is an exciting opportunity to enhance our world-class nickel resource base in Western Australia. Proximity to our existing facilities makes us the natural owners of these deposits, and provides potential options to bring the undeveloped resources to market,” said BHP's Nickel West asset president Eddy Haegel.
“Nickel continues to be an essential input into new technologies that will improve the battery storage needed for renewables and electric vehicle manufacturing. Consistent with our strategy to invest in future facing commodities, this transaction gives us access to explore and develop these prospective nickel sulphide tenements.”
The combined tenement package is located in the northern Goldfields region of Western Australia, approximately 50 km from BHP’s Mt Keith mine and 100 km from its Leinster concentrator.
“With the sale of Honeymoon Well nickel project we complete the strategic exit from Australian operations and reinforce our focus on the development of our Tier-1 asset portfolio in Russia,” said Norilsk senior VP for strategy, strategic projects, logistics and procurement, Sergey Dubovitsky.
“We are grateful to BHP as our JV partner in Australia and appreciate their commitment to prompt execution of the transaction.”
Completion of the agreement is subject to a number of conditions including government and third party approvals.