Andrew Forrest Invests $760M in Kambalda Nickel Mines Amid Industry Challenges
Andrew Forrest's Wyloo has invested $760 million in Mincor Resources in Kambalda, Western Australia, although the mines were shut down shortly after the acquisition. The nickel sector faced significant challenges in 2024, affecting local operations like the long-closed Foster mine, while Wyloo considers further investments in the region to capitalize on future demand for nickel in battery production.
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Andrew Forrest's Wyloo completed a $760 million acquisition of Mincor Resources in Kambalda, Western Australia, in 2023, but the mines were shut down shortly after. The nickel sector in Western Australia collapsed in 2024, impacting the region's mining operations, including the Foster mine, which has been closed since 1994.
Lunnon Metals, which owns the Foster mine, estimates it would cost $60 million to restart production. The Kambalda district has a rich history in nickel mining, with over 1.6 million tonnes extracted since the first nickel mine opened in 1967.
The industry faces challenges, with few companies focused on nickel and a need for improved market sentiment. Wyloo is considering acquiring the Kambalda nickel concentrator or building a new mill, anticipating increased demand for nickel from batteries and electric vehicles in the future.
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