Andrew Forrest closes WA mines after six months as nickel prices crash

The news: Andrew Forrest's private company Wyloo will close the Western Australian nickel mines it bought six months ago, the Australian Financial Review reported, owing to the steep decline in nickel prices that has triggered major job losses across the state.

The numbers: Wyloo, which employs over 220 contractors and supplies BHP's nickel operations, bought the mines near Kambalda in WA for $760 million last year. It's estimated around 1000 jobs in WA have been lost since the start of December as a result of crash in nickel prices, which Australia's producers attribute to a surplus of production from China-backed projects in Indonesia.

The context: The mining billionaire marked his return to the nickel sector when Wyloo acquired Mincor Resources in July 2023. The decision to close the mines comes amid Australian criticism of trade practices in Indonesia, with Forrest calling for pricing distinctions for nickel material produced under highly regulated standards in Australia compared to those in Indonesia.