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

Shivani Kumaresan
March 18, 2024

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BHP Group Ltd (NYSE: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.

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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.

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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.

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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.

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

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

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

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

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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