Japan Inc backing for nickel mine puts BHP bailout in doubt

According to The Australian Financial Review, Japan Inc will back the development of one of the world’s biggest nickel deposits in Western Australia in a move that casts further doubt on whether the Albanese government will bail out BHP and its struggling operations.
Sumitomo and Mitsubishi have agreed to back Ardea Resources and its $3.1 billion nickel laterite and cobalt project, about 80 kilometres from Kalgoorlie and BHP’s ageing nickel smelter.
Ardea, Sumitomo and Mitsubishi will form a partnership to develop Goongarrie, sharing the cost of feasibility study up to $98.5 million. The Japanese partners will help secure debt funding on favourable terms and emerge with a 50 per cent stake alongside Ardea if the project goes ahead.
Sumitomo, which would own 40 per cent of the combined entity alongside Mitsubishi’s 10 per cent, has experience in developing nickel laterite mines and HPAL processing plants through two big operations in the Philippines – Coral Bay and Taganito – and owns nickel refineries in Japan.

https://www.afr.com/companies/mining/japan-inc-backing-for-nickel-mine-puts-bhp-bailout-in-doubt-20240429-p5fndw
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