Privately held nickel producer Wyloo Metals Pty Ltd. will close its Kambalda mine in Western Australia due to a sharp drop in prices for the metal.
The company said in a statement on Monday that the mine near Kambalda would be under care and maintenance from May 31. A Wyloo spokesman added that it had informed BHP Group Ltd. that it would not be able to honour a nickel offtake agreement due to expire at the end of 2025. Wyloo just bought the mines six months ago. Used to make stainless steel and electric car batteries.
The closure of Wyloo's Kambalda mine follows a warning last week by BHP Billiton, the world's largest miner, that it might be forced to write down the value of nickel to cushion the impact of tumbling prices. Wyloo has assets in Canada and Australia, and last year also signed a deal with IGO Ltd. Signed a joint venture agreement to produce battery materials at a factory near Perth. Wyloo said in the statement that despite the closure of the mines, the company is looking into developing its own nickel concentrator in the Kambalda area.
