Kalgoorlie Nickel Smelter
| Company type | Subsidiary |
|---|---|
| Industry | Nickel processing, Metallurgy |
| Founded | 1972 |
| Founder | WMC Resources |
| Headquarters | Feysville, Kalgoorlie , Australia |
Area served | Western Australia |
| Products | Nickel matte |
| Owner | BHP |
Number of employees | Over 900 (as of 2005) |
| Parent | BHP Nickel West |
The Kalgoorlie Nickel Smelter is a nickel processing facility located in Feysville, just south of Kalgoorlie in Western Australia. Currently managed by BHP as a component of its Nickel West division, the smelter was initially established by WMC Resources prior to BHP's acquisition of WMC in 2005.
Operations
This smelter plays a crucial role within BHP's Nickel West operations, which also encompass the Leinster Nickel Mine, Mount Keith Nickel Mine, Kambalda Nickel Concentrator, and the Kwinana Nickel Refinery.
History
After WMC Resources discovered nickel deposits at Kambalda, the company assessed various smelting technologies and ultimately selected the flash smelting technique pioneered by Finnish company Outokumpu in 1970. Multiple potential locations were evaluated, including Kambalda and Kwinana; however, Kalgoorlie was chosen due to its closeness to ore sources, existing infrastructure, and an available labor force amid a downturn in local gold mining. The Western Australian government allocated land south of Kalgoorlie for the project, and WMC partially financed a railway extension to Esperance in return for discounted freight charges.
Construction commenced in early 1971 following an announcement in late 1970 with an initial investment of $30 million. The smelter began operations in December 1972, initially capable of processing 200,000 tonnes of nickel concentrate yearly and producing 29,000 tonnes of nickel matte. The official inauguration took place on 7 April 1973, officiated by then Prime Minister Gough Whitlam, marking it as Australia's first dedicated nickel smelting plant.
Initial production phases encountered operational difficulties; the original flash furnace was replaced in 1978 with a larger unit featuring a capacity of 450,000 tonnes per annum. This upgrade enhanced reliability and allowed toll-processing of ore from mines outside WMC’s portfolio, such as Agnew. Subsequently, WMC acquired the Agnew mine to sustain throughput after its closure in 1986.
By 1988, the smelter had processed a cumulative five million tonnes of concentrate. Between 1991 and 1993, a new furnace with an annual capacity of 750,000 tonnes was installed, increasing output to approximately 65,000 tonnes each year. Following BHP’s acquisition of WMC in 2005, the facility became part of BHP’s Nickel West segment; at that time it employed over 900 personnel and was a significant contributor to Western Australia’s nickel production.
Scheduled maintenance shutdowns impacted operations temporarily: a four-month closure occurred in June 2008 and a shorter stoppage lasting 21 days took place in October 2015, both coinciding with volatile global nickel market conditions. In response to these challenges, BHP announced plans for a $150 million refurbishment slated for 2023 intended to prolong the plant’s operational lifespan through to 2040.
Production was further disrupted by a fire incident in September 2018. In the fiscal year 2021–22, BHP collaborated with renewable energy firm TransAlta to establish a solar power installation combined with battery storage aimed at supplying electricity to the Kalgoorlie smelter alongside other assets within Nickel West. Additionally, a $7.5 million upgrade was conducted at the smelter in late 2022, causing short-term reductions in output.
In August 2023, BHP secured approval to build a fly-in fly-out accommodation facility comprising 1,152 rooms for a three-year period to support workforce needs during the smelter’s reconstruction project designed to extend its service life by twenty years.
Amidst global nickel oversupply and declining prices, on 11 July 2024 BHP declared it would temporarily suspend all Nickel West operations—including the Kalgoorlie smelter—from October 2024 until at least February 2027. The company committed to sustaining annual expenditures of $450 million on these assets to facilitate potential future restarts while offering affected employees options for redeployment or redundancy packages. This suspension also freed capacity on the TransAlta gas-powered generator for integration into the Kalgoorlie electricity grid.
External links
- Official BHP website
- MINEDEX: Kalgoorlie Nickel Smelter Resource from the Department of Mines, Industry Regulation & Safety database