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Leinster Nickel Mine

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Nickel mine in Western Australia

Leinster Nickel Mine
Location
Leinster Nickel Mine is located in Western AustraliaLeinster Nickel MineLeinster Nickel MineLocation in Western Australia
LocationLeinster
StateWestern Australia
CountryAustralia
Coordinates27°48′50″S 120°41′57″E / 27.81389°S 120.69917°E / -27.81389; 120.69917
Production
ProductsNickel
Production80,000 tonnes
Financial year2022–23
History
Opened1978
Active1978–19861989–2024
Owner
CompanyBHP
WebsiteBHP website
Year of acquisitionJune 2005

Leinster Nickel Mine is a surface and underground nickel mine, 5 km north of Leinster, Western Australia. The deposit was discovered in 1971 and the mine opened in 1978, operated by the Agnew Mining Company. It was purchased by WMC Resources in 1988 which, in turn, was taken over by BHP in 2005.

The mine has suffered a number of fatalities throughout its operation, most notably on 27 April 1977, when five employees were killed in one incident.

History

The nickel deposit at Leinster was discovered in 1971 by Western Selcast Pty Ltd. To develop this asset, the Agnew Mining Company was formed in 1974, of which 60 percent were owned by Western Selcast and 40 percent by MIM Holdings, and development of the mine started in 1976, with underground mining commencing in 1978 in what was then referred to as the Agnew Mine.

In May 1978, a conventional concentrator with an annual capacity of 350,000 tonnes was commissioned at the mine, with the concentrate processed at WMC Resources's Kalgoorlie Nickel Smelter. The concentrate was transported by road to Leonora, and from there by rail to Kalgoorlie. The mine was officially opened on 5 November 1978 by Charles Court, Premier of Western Australia. The concentrator of the mine was subsequently enlarged to 500,000 tonnes in 1980 and 750,000 tonnes in 1984. In 1985, BP acquired the parent company of Western Selcast, Selection Trust, and therefore a 60 percent interest in the mine.

On 15 August 1986, operations at the Agnew Mine ceased because of declining nickel prices, with the mine being placed in care and maintenance. The closure of the mine affected WMC Resources negatively as it reduced the throughput in its Kalgoorlie smelter. With BP Australia and MIM Holdings willing to sell the mine and WMC being able through its other state assets to take a long-term approach to nickel mining in Western Australia, the mine was sold in late 1988, with BP's interest sold for an undisclosed amount while MIM Holdings sold theirs for A$120 million. WMC subsequently reopened the mine, resuming operations in May 1989.

WMC renamed the mine to Leinster Nickel Operations while it renamed its local gold mine, the Emu mine, to Leinster Gold Operations, now the Agnew Gold Mine. WMC upgraded the concentrator to a capacity of one million tonnes within its first year of operations, to be doubled in the following two years. At the time of the closure in 1986, the nickel price had fallen to U$1.70 per pound while, on reopening it in 1989, prices had recovered to U$8.30 per pound.

In 2005, WMC Resources was acquired by BHP, which bundled WMC's nickel assets under its Nickel West brand, which became the largest nickel producer in the state, producing a combined 67,000 tonnes out of the 180,000 tonnes produced in Western Australia in 2004–05. At the time of the WMC acquisition by BHP, the mine employed over 1,100 people.

Due to an oversupply of nickel and a consequent drop in nickel prices, BHP announced on 11 July 2024 that it would temporarily close all of its Nickel West operations in October 2024 and place them in care and maintenance. This decision is scheduled to be reviewed in February 2027 but BHP would continue to spend $450 million annually on its nickel operations to facilitate a potential restart. The decision was estimated to affect 1,600 workers and the mines and smelters but BHP committed to offer all employees affected a redeployment or redundancy.

Production

Mining in the Wiluna-Leinster area.

Leinster is part of BHP's Nickel West operations, which includes, apart from Leinster, the Mount Keith Mine, the Kambalda Nickel Concentrator, the Kalgoorlie Nickel Smelter and the Kwinana Nickel Refinery.

BHP, through its Nickel West operations, mines Nickel sulphide in open-cut and underground operations northern part of the Goldfields region of Western Australia. Nickel concentrate is then dried and transported by rail to the Kalgoorlie Nickel Smelter. The resulting product, containing approximately 68 percent nickel, is then once more transported by rail, now to the Kwinana Nickel Refinery. At Kwinana, it is converted to nickel metal at a grade of 99.8 percent. This product is then shipped via the Port of Fremantle.

Production figures published by the company for the whole Nickel West Operations and not broken down to individual mines. In 2020–21, Nickel West produced 89,000 tonnes of nickel, an eleven percent increase of production in comparison to the previous year. The average sale price for the produced nickel was US$16,250 per tonne. In 2021–22, Nickel West's nickel production fell to 77,000 tonnes.

As of 2022, mining occurs at the Camelot open-pit and the Venus and B11 underground operations, while mining at the Rocky’s Reward open pit ceased in 2021. Underground mining at Leinster was suspended between 2013 and 2016. Ore for the mine is also sourced from the Cliffs mine, which opened in 2008 and is located south of the Mount Keith mine, supplying ore to both.

Fatalities

During the development of the mine, on 27 April 1977, five employees died at the mine's Perseverance shaft after falling 35 metres in an ore bucket. In 1981, an employee was killed in an underground cave-in. On 11 December 1985, two men died of asphyxiation in the underground operation of the mine, the second one dying while attempting to rescue the first. On 11 April 2010, a miner fell to his death at the mines underground operation.

The fatality of the five miners in 1977 resulted in a trail for manslaughter in the Kalgoorlie Supreme Court of four employees at the mine, the registered manager, the master shaft-sinker, an electrical engineer and a winder-driver.

Notes

  • Production figure is for the combined Nickel West Operations, which consists of the Mount Keith Mine, Leinster Mine and Cliffs Mine.

References

  1. "BHP Annual Report 2023" (PDF). www.bhp.com. BHP. Retrieved 26 February 2024.
  2. "the mining scene A CHEAP ENTRY INTO AGNEW NICKEL AREA? (7 August 1971)", The Bulletin, 093 (4767), John Haynes and J.F. Archibald: 59, 7 August 1971, ISSN 0007-4039
  3. ^ Gilbert M. Ralph (17 November 1994). Leinster Nickel Operations (Report). WMC Resources. Retrieved 10 March 2023 – via National Library of Australia.
  4. "Nickel Mine". The Canberra Times. Australian Capital Territory, Australia. 5 November 1978. p. 3. Retrieved 11 March 2023 – via National Library of Australia.
  5. "WA nickel mine to close". The Canberra Times. Vol. 60, no. 18, 553. Australian Capital Territory, Australia. 19 July 1986. p. 9. Retrieved 11 March 2023 – via National Library of Australia.
  6. Mount Isa Mines Limited (1 February 1989), "SALE OF AGNEW MINE (1 February 1989)", Mimag (1), Mount Isa Mines Limited: 23, retrieved 11 March 2023
  7. "WMC to spend $50m on WA nickel refinery". The Canberra Times. Vol. 66, no. 20, 608. Australian Capital Territory, Australia. 14 September 1991. p. 49. Retrieved 11 March 2023 – via National Library of Australia.
  8. "Production to begin again at Agnew". The Canberra Times. Australian Capital Territory, Australia. 31 December 1988. p. 10. Retrieved 11 March 2023 – via National Library of Australia.
  9. Western Australian Mineral and Petroleum Statistics Digest 2004-05 Department of Mines, Industry Regulation and Safety, accessed: 10 March 2023
  10. Gian De Poloni, Jon Daly, and Nicolas Perpitch (11 July 2024). "BHP to close Nickel West mines until 2027, blaming global oversupply of nickel". ABC News. Retrieved 12 July 2024.{{cite news}}: CS1 maint: multiple names: authors list (link)
  11. ^ "BHP: Nickel". www.bhp.com. BHP. Retrieved 10 March 2023.
  12. "BHP Annual Report 2021" (PDF). www.asx.com.au. BHP. 14 September 2021. Retrieved 14 May 2022.
  13. ^ "BHP Annual Report 2022" (PDF). www.igo.com.au. BHP. Retrieved 7 March 2023.
  14. "Cliffs Nickel Mine (Cliffs-Charterhall; Mount Keith-Cliffs Charterhall), Mount Keith, Wiluna Shire, Western Australia, Australia". www.mindat.org. Mindat.org. Retrieved 10 March 2023.
  15. "Perseverance Mine, Leinster, Leonora Shire, Western Australia, Australia". www.mindat.org. Mindat.org. Retrieved 10 March 2023.
  16. "History". The Canberra Times. Australian Capital Territory, Australia. 27 April 1989. p. 12. Retrieved 11 March 2023 – via National Library of Australia.
  17. "Edward John POTTS". www.wavmm.com. Western Australian Virtual Miners Memorial. Retrieved 10 March 2023.
  18. "Trapped miner found dead at BHP's Perseverance mine". Australian Mining. 12 April 2010. Retrieved 11 March 2023.
  19. "Mine-deaths trial". The Canberra Times. Australian Capital Territory, Australia. 21 July 1977. p. 10. Retrieved 11 March 2023 – via National Library of Australia.

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