06:35 AM EDT, 07/11/2024 (MT Newswires) -- BHP Group ( BHP ) said Thursday it will temporarily suspend the Nickel West operations and the West Musgrave project due to oversupply in the global nickel market.

The company said it would temporarily halt operations at its Western Australia Nickel facilities starting in October, following a transition period beginning this month.

The mining company will invest about $300 million annually to restart operations after the transition period. It added that frontline employees will be offered other company roles or voluntary redundancy roles, with 20 million Australian dollars ($13.5 million) Community Fund set up to aid local communities during the suspension.

BHP said any redundancy payments and other contractual costs triggered by the decision would be recognized in the company's HY2025 financial statements.

The company will review its decision to suspend the Western Australia Nickel temporarily by February 2027.

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