Sirius Resources vows to spurn Nickel West buyer

Nickel developer Sirius Resources says it will avoid signing up a customer that intends to buy BHP’s Nickel West business.

Sirius Resources managing director Mark Bennett

Nickel developer Sirius Resources says it will avoid signing up a customer that intends to purchase BHP Billiton’s unloved Nickel West business in an ­attempt to keep competition for its output alive.

Sirius, which is spending $443 million developing the Nova nickel mine in Western Australia’s Fraser Range, earlier this year committed to sell half of its nickel concentrate into BHP’s Nickel West smelter near Kambalda.

Speaking to The Australian on the sidelines of the Mines and Money conference in Hong Kong yesterday, chief executive Mark Bennett said the company was determined that the remaining half of its production wound up in the hands of a party that did not also have its eye on Nickel West.

“Our desire is to have two entirely different nickel customers. What we wouldn’t want to do is hook up with two separate parties that become one through buying Nickel West,” Mr Bennett said.

BHP last year officially pulled the proposed sale of Nickel West after failing to secure acceptable terms. But the ageing business continues to be an anomaly within the mining giant, and will only look more out of place once the company’s South32 demerger takes place.

Swiss commodities trading heavyweight Glencore is widely seen as an interested party in Nickel West.

Mr Bennett said the company had expectations about who was likely to be interested in acquiring Nickel West.

Construction of Nova started on Australia Day, and Mr Bennett said the development was on or ahead of schedule and budget.

He expected to finalise the contract for the project’s processing plant in the next two weeks.