The agreement also covers associated mining tenements and mineral rights. Neither company disclosed the purchase price.
Gold Fields will assess whether the plant can support gold or nickel processing. It has not committed to reopening the facility or announced a production timetable.
The acquisition comes after Northern Star Resources rejected Gold Fields’ separate $27 billion takeover approach, leaving the South African miner pursuing other opportunities in Australia.
According to BHP’s 7 October announcement, the transaction remains subject to conditions, including regulatory approvals. Completion is expected during 2027, with BHP continuing to manage the asset until ownership transfers.
A new use for idle infrastructure
Buying existing infrastructure could give it additional processing options, but that depends on the technical assessment and the cost of bringing the plant into use. The company has not announced a conversion project.
“These are highly strategic assets located in a region where we have operated and invested for many years,” Gold Fields’ Australian operations executive Craig Bradshaw said in remarks carried by International Mining.
The company said gold production remains its core focus. The acquisition therefore should not be treated as a confirmed shift away from gold into a new nickel-production business.
Nickel slump creates an opening
BHP announced the suspension of its Western Australian nickel business in July 2024 after excess global supply weakened the market.
The Kambalda sale covers only part of that business. BHP’s remaining Western Australian nickel assets remain suspended, with their future due for review by February 2027.
For Gold Fields, the deal provides a smaller, asset-specific expansion opportunity alongside its much larger takeover ambitions.
Source: africa.businessinsider.com
