BHP Faces Major Nickel Market Challenges, Net Income Plummets

Despite a steady underlying profit, BHP Group Ltd. grapples with an oversupplied nickel market, leading to significant asset write-downs.

BHP Group Ltd. reports a significant 86% drop in net income due to a $2.5 billion impairment on its Australian nickel assets.
The oversupply in the nickel market, exacerbated by increased production in Indonesia, has led to the closure of several nickel projects in Australia.
BHP's underlying profit remains steady at $6.57 billion, despite the challenges in the nickel sector.
The company is considering mothballing its Nickel West operations, which have been unprofitable since 2018, amid ongoing market challenges.
Australia adds nickel to its Critical Minerals List, offering potential government support for the sector.