Kwinana Nickel Refinery
| Company type | Subsidiary |
|---|---|
| Industry | Nickel refining |
| Founded | 1970 |
| Founder | WMC Resources |
| Headquarters | Kwinana Beach, East Rockingham , Australia |
Area served | Western Australia |
| Products | Nickel powder, nickel briquettes, nickel sulphate |
| Owner | BHP |
Number of employees | 454 (2005) |
| Parent | BHP Nickel West |
The Kwinana Nickel Refinery is situated in East Rockingham and Kwinana Beach, Western Australia. This facility, managed by BHP as a component of its Nickel West operations, was initially constructed by WMC Resources before being acquired by BHP in 2005.
Operations
As a key element of BHP's Nickel West portfolio—which also includes the Leinster Nickel Mine, Mount Keith Nickel Mine, Kambalda Nickel Concentrator, and the Kalgoorlie Nickel Smelter—the Kwinana refinery converts nickel matte into nickel powder and briquettes with a purity of 99.8%.
In late 2021, the refinery introduced Australia's inaugural nickel sulphate production facility, generating an essential material for lithium-ion batteries used in electric vehicles.
History
After developing its Kambalda nickel deposit, WMC Resources opted for the Sherritt Gordon hydrometallurgical ammonia-leach technique to refine nickel and selected Kwinana due to its reliable access to electricity, water, and raw inputs. The design phase commenced in 1967, with commissioning finalized in May 1970. The construction phase involved 1,500 workers and required an investment of $40 million, financed through a share issuance.
Originally, the refinery was capable of producing 15,000 tonnes of nickel powder annually from concentrate. It was officially inaugurated on 15 September 1970; concurrently, WMC established an environmental studies chair at Murdoch University. The launch coincided with expanded mining and milling activities at Kambalda.
Following the opening of the Kalgoorlie Nickel Smelter in 1972, Kwinana’s throughput increased as it transitioned from processing low-grade concentrate to higher-grade nickel matte. By 1986, concentrate processing had been fully discontinued, and production capacity had doubled to 30,000 tonnes per year. During the late 1980s, a Carbon in pulp plant was installed to recover gold from residues but was subsequently dismantled due to diminishing returns.
Production slowed between 1989 and 1991 because of reduced smelter output and weaker global demand; however, full capacity was restored afterward. In September 1991, WMC announced a $50 million upgrade project intended to boost annual output to 90,000 tonnes by 1995, with Kwinana’s target set at 42,000 tonnes. Concurrently, investments of $127 million were made at Leinster and $230 million planned for Kambalda and Kalgoorlie. Earlier ambitions to expand refinery capacity overseas were shelved following royalty concessions by the state government.
By 1998, yearly production had reached 53,700 tonnes. After BHP’s acquisition of WMC in 2005, all nickel assets were consolidated under Nickel West, positioning it as Western Australia’s largest nickel producer with a combined output of 67,000 tonnes—out of the state’s total of 180,000 tonnes during 2004–05. At that time, Kwinana employed 454 personnel.
In the 2021–22 period, BHP collaborated with renewable energy firm TransAlta to establish a solar farm and battery storage system supplying power to the Kalgoorlie smelter, Kwinana refinery, and Kambalda concentrator—the latter having been recommissioned in May 2022 after being placed on care and maintenance since 2018.
Confronted with a global surplus of nickel and falling prices, BHP declared on 11 July 2024 that all Nickel West operations would be temporarily suspended from October 2024 and placed into care and maintenance until at least February 2027. This decision impacts roughly 1,600 employees across mines and smelters. BHP pledged to maintain an annual investment of $450 million to facilitate a potential restart while providing affected workers with options for redeployment or redundancy.
Environmental concerns
At first, the refinery’s placement within the partly residential area of Kwinana Beach resulted in numerous complaints regarding air quality. This issue was resolved when the Western Australian government reclassified the zone for industrial purposes. Opposition also arose concerning the tailings disposal site located at Baldivis, which was addressed by acquiring the adjacent land. More significantly, concerns about tailings leakage contaminating groundwater near Lake Cooloongup led to the decision to transport tailings back to Kambalda for safe containment.
Workplace fatalities
On 9 June 1978, two workers, Bell and Haywood, tragically lost their lives due to nitrogen gas asphyxiation inside a converter vessel. Bell is believed to have experienced a malfunctioning face mask seal, and Haywood died while attempting to rescue him.