Leinster Nickel Mine
| Company type | Subsidiary |
|---|---|
| Industry | Mining |
| Founded | 1978 |
| Headquarters | Leinster , Australia |
| Products | Nickel |
Number of employees | 1,100 (at acquisition by BHP in 2005) |
| Parent | BHP (since 2005) |
Leinster Nickel Mine is an open-pit and underground nickel extraction site situated approximately 5 km north of Leinster, Western Australia. Discovered in 1971, mining activities commenced in 1978 under the Agnew Mining Company. Ownership changed hands to WMC Resources in 1988 and subsequently to BHP in 2005.
The mine has a history marked by several fatal accidents, including a tragic event on 27 April 1977 that resulted in five fatalities.
History
The nickel deposit at Leinster was initially identified by Western Selcast in 1971. In 1974, the Agnew Mining Company was established, with Western Selcast holding a 60% stake and MIM Holdings owning 40%. Development began in 1976, and underground mining operations started two years later under the name Agnew Mine.
In May 1978, a concentrator capable of processing 350,000 tonnes annually was brought online, with concentrate shipments sent to WMC's Kalgoorlie Nickel Smelter. Transport involved road haulage to Leonora followed by rail to Kalgoorlie. The mine's official inauguration took place on 5 November 1978. Production capacity was increased to 500,000 tonnes by 1980 and further expanded to 750,000 tonnes in 1984. In 1985, BP acquired the parent company of Western Selcast, thereby securing a 60% ownership share.
Operations were halted on 15 August 1986 as a result of falling nickel prices, placing the mine into care and maintenance status. This suspension affected WMC Resources by decreasing throughput at its Kalgoorlie smelting facility. In late 1988, BP Australia and MIM Holdings divested their stakes—MIM’s sale valued at A$120 million—and WMC resumed mining activities in May 1989.
Upon reopening, WMC rebranded the site as Leinster Nickel Operations and increased concentrator capacity to one million tonnes within the first year, with plans for doubling this output over the next two years. Nickel prices had rebounded from US$1.70 per pound at closure to US$8.30 per pound at the time of reopening.
In 2005, BHP acquired WMC Resources and incorporated Leinster into its Nickel West portfolio—the leading nickel producer in Western Australia—which generated 67,000 tonnes of nickel out of the state's total production of 180,000 tonnes during 2004–05. At acquisition, Leinster employed over 1,100 personnel.
Facing a global surplus of nickel and declining prices, BHP announced on 11 July 2024 its intention to temporarily suspend all Nickel West operations starting October 2024, placing them into care and maintenance until at least February 2027. Despite this pause, BHP will maintain an annual investment of $450 million to facilitate a potential restart. This shutdown is anticipated to impact roughly 1,600 employees across mines and smelting facilities, with options for redeployment or redundancy provided.
Production
Leinster forms part of BHP’s Nickel West operations alongside the Mount Keith Nickel Mine, Kambalda Nickel Concentrator, Kalgoorlie Nickel Smelter, and Kwinana Nickel Refinery.
BHP extracts nickel sulphide via both open-pit and underground methods within Western Australia’s northern Goldfields region. The nickel concentrate is dried before being transported by rail to the Kalgoorlie Nickel Smelter, where it is processed into a product containing approximately 68% nickel. This intermediate product is then shipped by rail to the Kwinana Nickel Refinery for refinement to 99.8% pure nickel metal prior to export through the Port of Fremantle.
Production statistics are reported collectively for the entire Nickel West operation rather than broken down by individual mines. During the fiscal year 2020–21, Nickel West produced 89,000 tonnes of nickel—an increase of 11% compared to the previous year—with an average sale price of US$16,250 per tonne. Production decreased to 77,000 tonnes in 2021–22.
As of 2022, active mining sites include the Camelot open pit alongside Venus and B11 underground operations; mining activities at Rocky’s Reward open pit were discontinued in 2021. Underground mining at Leinster was paused between 2013 and 2016. Additionally, ore is sourced from the Cliffs mine—opened in 2008 south of Mount Keith—which supplies material to both Leinster and Mount Keith operations.
Fatalities
Throughout the mine's development phase, five workers lost their lives on 27 April 1977 when they fell 35 metres inside an ore bucket at the Perseverance shaft. In 1981, a fatal underground collapse claimed the life of another employee. On 11 December 1985, two individuals succumbed to asphyxiation below ground; notably, the second fatality occurred during a rescue operation. Additionally, on 11 April 2010, a miner died after falling within the subterranean workings.
The tragic events of 1977 resulted in a manslaughter case heard at the Kalgoorlie Supreme Court, involving four personnel from the mine: the registered manager, master shaft-sinker, electrical engineer, and winder-driver.
Notes
- The production statistics represent the aggregate output of Nickel West Operations, which includes Mount Keith Mine, Leinster Mine, and Cliffs Mine.