BHP BILLITON has closed its Kalgoorlie Nickel Smelter furnace in Western Australia, cutting supplies by 28,000 tonnes and sending prices soaring.
According to the company, the major rebuild of the furnace has been in planning for two years. However, the four-month rebuild had to be brought forward because of safety concerns.
The smelter normally produces around 100,000 tonnes of nickel-in-matte per year which is then refined or sold to international customers.
The furnace rebuild means the Kwinana Nickel Refinery will also be shut down during the operation. The gas usually supplied to the furnace will be reallocated to the Worsley Alumina Refinery.
The 28,000 tonnes of nickel slashed from the world market accounts for nearly 2% of the global supply. The announcement prompted nickel prices to jump by US$625 per tonne. The nickel market is already projected to be in deficit by 80,000 tonnes in 2008.

Leave a comment