Wyloo is closing nickel mines near Kambalda due to metal low price

Low nickel prices

The huge decline in nickel prices due to the increase of Indonesia’s supply in 2023 has impacted Australian nickel producers. Australia is the world’s fifth biggest producer of mined and refined nickel, with output led by BHP.

Mine closure

This week Wyloo owned by Andrew Forrest has informed that mines near Kambalda will go into care and maintenance from May 31. Moreover, the company which purchased mines six months ago, informed BHP. that it won’t be able to fulfill a nickel off-take agreement. The nickel off-take agreement expires at the end of 2025.

The information about the closure of Wyloo’s Kambalda happened right after the BHP’s warning that it could be forced to write down the value of its nickel to mitigate the crash in prices.