The BHP Group Ltd (ASX: BHP) share price is down more than 1% after it announced an asset sale to Gold Fields.
BHP is one of the world’s largest miners, with a large focus on iron ore and copper. Coal is another commodity that it produces.
BHP sells nickel concentrator
The ASX mining share said that it has entered into agreements to divest the Kambalda Nickel Concentrator (KNC) and a package of tenements and mineralisation rights to Gold Fields.
BHP said that Gold Fields is a reliable and credible operator, with a strong track record in safety, operational performance, workforce engagement and community contribution, with an established presence in the region. Gold Fields will evaluate options for the long-term use of the concentrator and offer employment to people directly supporting the asset.
The ASX mining share said it will continue to manage the asset safely, responsibly and in partnership with our workforce through to completion of the transaction, including meeting all cultural heritage, regulatory and environmental obligations.
These agreements are subject to the satisfaction of certain conditions,
What about the rest of BHP’s nickel assets?
Back in July 2024, BHP announced it was temporarily suspending its Western Australia Nickel (WA Nickel) assets following oversupply in the global nickel market. The rest of the WA Nickel assets remain in temporary suspension.
BHP said it intends to review the decision by February 2027. Divestment is one of the options being considered, as well as continuing temporary suspension, restart or closure in consultation with relevant stakeholders.
Management comments
The BHP Vice President WA Nickel Annabelle Blom said:
Today is a positive outcome and it provides certainty for our employees, the Goldfields region and the local community.
Gold Fields is a respected operator with established relationships with Traditional Owners and a strong, long-term presence in the Goldfields region.
Nothing is more important than safety. BHP will continue to care for our people and manage the asset safely, responsibly and in partnership with our workforce through to completion of the transaction.
The review process continues and we remain committed to engaging closely with our people and communities to keep them informed of progress and decisions.
Final thoughts on the BHP share price
This isn’t an important deal for BHP, nickel was one of its ‘smallest’ commodities. But, it’s good to move this asset on and simplify the business a little.
I wouldn’t buy or sell BHP shares based on this news. I’d be happy if I were a long-term shareholder, but I’d wait for a better price before buying because of how cyclical commodity prices can be.
