West Musgrave, Australia / Nickel and copper
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West Musgrave is a large-scale, BHP-owned, nickel and copper development project located in Western Australia, approximately 1,300km north-east of Perth.
Development
Nickel and copper
BHP
Australia
Royalty rate and type
2% NSR
Balance sheet classification
Royalty Intangible
Key facts
24-year
Mine life and further extension potential
2027
Construction was suspended in 2024 due to low nickel prices; the status will be reviewed by February 2027
The Group owns a 2.0% NSR royalty over the West Musgrave project in Australia.
Average annual production from West Musgrave is expected to be approximately 35Kt of nickel and 41Kt of copper over the first five years of production and 27Kt of nickel and 33Kt of copper thereafter. Total reserves are estimated at 270Mt at 0.31% nickel and 0.34% copper grades with an expected mine life of over 24 years (as per the OZ Minerals 2022 Mineral Resource and Ore Reserve Statement for West Musgrave).
West Musgrave is a low cost, sustainable way of accessing two commodities, copper and nickel, that will play a vital role in the energy transition. Renewable sources of energy are expected to provide 80% of the power, with plans to increase it to 100%, which would make it one of the largest fully off-grid renewable powered mines in the world.
- During 2024 BHP took the decision to temporarily suspend operations at its Western Australia nickel unit.
- West Musgrave forms part of the wider Western Australia nickel unit and construction, which is >21% complete, was suspended.
The decision to temporarily suspend operations at the Western Australia nickel division will be reviewed by BHP by February 2027.