BHP eyes increasing stage one nickel sulphate output

Australia-UK resources firm BHP thinks its new nickel sulphate plant outside Perth has the potential to exceed its stage one design capacity of 100,000 t/yr.

It is in its final stages of commissioning, with nickel powder being diverted to the nickel sulphate plant and stored in overhead bins in preparation for starting operations in the July-September quarter, the group said at the annual Diggers and Dealers mining conference at Kalgoorlie.

BHP, which owns the integrated Nickel West mining and processing operation in Western Australia, said construction delays over the past two years have provided it with the opportunity to explore ideas to increase the dissolution rate and nickel sulphate production. Nickel West has developed a process in the main part of its nickel refinery at Kwinana to produce finer powder and has tested the impact of adding hydrogen peroxide to leach reactors.

"Together, these initiatives have demonstrated significant improvements in the production rate of the new nickel sulphate plant and provides us with confidence that the new facility has the potential to exceed 100,000 t/yr, remaining one of the largest in the world — and an Australian first," said Eddy Haegel, outgoing asset president of Nickel West.

Nickel sulphate demand and price premiums were low in 2020 mainly because of destocking. Nickel sulphate premiums have increased sharply in 2021 with growing demand from the battery material supply chain.

Argus assessed minimum 22pc nickel sulphate prices at $5,206/t on an ex-works China basis excluding value-added tax on 31 July, up from $3,473/t on 3 August 2020. Nickel metal was priced at $19,713/t on 2 August, up from $13,734/t on 3 August 2020.

Around 85pc of Nickel West's existing sales — mainly in the form of nickel powder and briquettes — is to the battery market but this is seen rising to around 90pc as the nickel sulphate plant ramps up.

Nickel West — which produced 89,000t nickel of nickel metal in the July 2020-June 2021 fiscal year and expects to produce 85,000-95,000t in 2021-22 — is increasing its resource base in Western Australia as it seeks to boost production of nickel sulphide from its mines.

By Angus Macmillan