Page 86 - Annual Report 2020

1.9.2 Minerals Australia continued

Western
Australia Newman

Cli s Mt Keith
Leinster
Geraldton

Kalgoorlie Smelter
Kambalda
Perth Concentrator
Fremantle Kwinana Refinery
Ravensthorpe

Albany
Nickel West Port Hwy

s1005_v1
Nickel West

Overview Looking ahead
Nickel West is a fully integrated mine-to-market nickel business. We continue to focus on finalising Nickel West’s resource transition.
All nickel operations (mines, concentrators, a smelter and refinery) Leinster B11 block cave is expected to commence the undercut
are located in Western Australia. The integrated business adds phase during the first half of FY2021, providing increasing
value throughout our nickel supply chain, with the majority of quantities of ore to the Leinster concentrator as the project
Nickel West’s current production sold as refined metal in the form progresses to full caving.
of powder and briquettes. Nickel West also offers development options and potential
Low-grade disseminated sulphide ore is mined from the large enhancements to its resource position through exploration and
open-pit operation at Mt Keith. The ore is crushed and processed processing innovation. These opportunities are being explored
on-site to produce nickel concentrate. High-grade nickel sulphide in parallel with incremental debottlenecking opportunities at the
ore is mined at the Cliffs, Leinster underground mines and concentrators and the Kalgoorlie nickel smelter.
Rocky’s Reward open-pit mine. The ore is processed through Nickel West is expected to complete construction of the nickel
a concentrator and dryer at Leinster. Nickel West’s facility at sulphate plant located at the Kwinana nickel refinery in the first
Kambalda processes material purchased from third parties. half of FY2021, with first product due in the second half of FY2021.
The three streams of nickel concentrate come together at the This stage (Stage 1) is expected to produce approximately 100 ktpa
Kalgoorlie nickel smelter. The smelter uses a flash furnace to smelt of nickel sulphate.
concentrate to produce nickel matte. The Kwinana nickel refinery
then refines granulated nickel matte from the Kalgoorlie smelter
into premium-grade nickel powder and briquettes containing
high-grade refined nickel. Nickel matte and metal are exported
to overseas markets via the Port of Fremantle.
Key developments in FY2020
The Nickel West resource transition involving the construction
of three new mines continued to progress during FY2020, with two
of these mines now in full production.
The Mt Keith satellite mine (Yakabindie) entered production in
December 2019 and is now the primary source of feed to the
Mt Keith concentrator.
The Venus underground mine transitioned to full production in
September 2019, with ore hoisted to the Leinster concentrator.
Leinster B11 (the first block cave to be developed by BHP, located
beneath the Leinster underground mine) proceeded in line
with expectations, with development ore hoisted to the
Leinster concentrator.
Nickel West signed an agreement to acquire the Honeymoon
Well development project on 19 June 2020 and the remaining
50 per cent interest in the Albion Downs North and Jericho
exploration joint ventures, located approximately 50 kilometres
from Mt Keith. Completion of the agreement is subject to a number
of conditions, including government and third party approvals.

84 BHP Annual Report 2020