Bis Industries replaced after 25 years at Glencore’s Murrin Murrin, ASX heavyweight snags a bigger contract

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Bis Industries replaced after 25 years at Glencore’s Murrin Murrin, ASX heavyweight snags a ******* contract

Glencore has cut ties with the inaugural mining services provider at Murrin Murrin to streamline WA’s last remaining long-life nickel mining operation in the face of severe market headwinds.

The Swiss commodities giant is taking a more hands-on approach in running the complex processing plant at Murrin Murrin, two months after warning that rising labour and energy costs could ***** the integrated mining and refining enterprise.

Murrin Murrin can sustain about 1500 workers when in full swing, pumping out enough nickel and cobalt to hold the crown as Australia’s premier producer across both battery commodities.

The West *********** understands Bis Industries recently demobilised from the site, which ***** at a midpoint between Leonora and Laverton in the nickel-rich Goldfields region.

The privately owned Bis has held an extensive scope of works from the day Murrin Murrin was switched on in 1999. This included helping extract, crush and mill the laterite ore, through to general logistics and transporting the saleable nickel and cobalt briquettes.

An Aurizon Holdings spokesman confirmed on Tuesday the $6 billion publicly listed business had scooped up the Murrin Murrin logistics and road haulage contracts in July.

Aurizon was already responsible for rail haulage between the Malcolm train station 45km west of Murrin Murrin and a shipping terminal at Kwinana.

It is also understood that Glencore has brought in-house a big chunk of the processing work Bis previously did. Bis did not respond to multiple requests for comment.

Sources say the operational restructure has resulted in an ongoing headcount reduction at Murrin Murrin of about 50 people. In-house roles at Glencore are said to have been shielded from any cuts.

“Small fluctuations in job numbers are reflective of the normal course of our operations which can include variations based on contracting requirements,” a Glencore spokeswoman replied in response to The West’s queries about the supposed headcount fall.

“Our Murrin Murrin operations are continuing to focus on producing high quality nickel and cobalt in a safe, reliable and efficient manner.”

The total Murrin Murrin workforce has ranged from about 1100 to 1500 in recent years.

Camera IconProcessing plant at Glencore’s Murrin Murrin nickel and cobalt mine. Credit: Unknown/Supplied

Nickel prices have halved since the start of 2023 to trade at $US15,600 a tonne on the London Metal Exchange by Wednesday afternoon. A warning from Russian President Vladimir ****** on Wednesday night that his country could ban nickel exports to retaliate against Western sanctions pushed the nickel spot price up 2.4 per cent on Thursday.

Thousands of WA nickel jobs have been wiped out over the past year after a tsunami of cheap ********-backed supply from Indonesia flooded the market.

BHP Nickel West was the largest — and most recent — nickel domino to topple. Its WA nickel arm that employed more than 3000 people is winding down and will formally cease production next month.

It joins the likes of Andrew Forrest’s Wyloo, Panoramic Resources and First Quantum Minerals in the WA nickel graveyard — temporarily at least.

BHP, formerly Australia’s number one nickel producer, is hopeful the market will turn around in a few years and by February 2027 plans to make a decision on whether to revive Nickel West or bury it for good.

IGO is the only company apart from Glencore still flying the nickel mining flag in WA, albeit with dwindling strength.

IGO is mothballing its Forrestania nickel mine in the Goldfields, while keeping its Nova operation in the same region online.

But Nova’s output is waning and the resource base is set to be depleted in 2026.

Murrin Murrin has an orebody that can support mine-life extensions for decades, Glencore has said.

Mr Forrest’s Anaconda Nickel brought Murrin Murrin to life in 1999, but it was plagued by cost blowouts and ramp up issues, which led to Mr Forrest being ousted as the company’s boss in the early 2000s with Anaconda in deep debt.

The disaster nearly dragged Mr Forrest into bankruptcy before he made his billions at Fortescue.

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